In a press conference, Thomas Djiwandono, a member of president-elect Prabowo Subianto’s transition team, assured investors and international institutions that the incoming administration will uphold Indonesia’s reputation for fiscal prudence. He emphasized that the budget deficit and debt-to-GDP ratio would be maintained within the current legal boundaries. Thomas denied rumors that Prabowo was considering an increase in the debt-to-GDP ratio to fund election campaign promises. Instead, he stressed the importance of responsible fiscal policy in maintaining financial stability and economic growth in Indonesia.
Thomas emphasized that the 2003 law, which restricts the fiscal deficit to not exceed 3 percent of GDP and the total debt to remain within 60 percent of GDP, has been put in place to prevent monetary crises like the 1997 Asian Financial Crisis. He assured that Prabowo Subianto is committed to these constraints and will maintain them under his administration. Thomas also highlighted the importance of open communication with investors and international institutions in addressing concerns about state spending and fiscal discipline. By upholding these constraints, Indonesia can preserve its hard-earned reputation for financial stability and maintain economic growth in the long term.