Prabowo Open to Breach Indonesia Deficit Cap Only During Crisis

President Prabowo Subianto said he would only consider temporarily exceeding Indonesia’s statutory budget deficit cap for emergency situations, adding that he remains committed to fiscal discipline and the nation must “live within our means.”

In an exclusive interview with Bloomberg News at his hilltop residence south of Jakarta, Prabowo said his government would only approve a short-term increase in the deficit beyond 3% of gross domestic product if oil prices stay elevated for a sustained period due to the US-Israel war in Iran. He likened the situation to the Covid-19 pandemic, when Indonesia’s fiscal deficit breached the legal limit for two years to allow for emergency spending.