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2026-05-25 13:45:53
[Indonesian Parliament to Review Fiscal Law Amendments, But Deficit Limit Rules Not to be Adjusted for Now] (1) A senior member of the Indonesian Parliament said that Parliament will soon begin reviewing amendments to the National Fiscal Law, but the focus will not be on changing the fiscal deficit limit rules. Currently, the annual budget deficit cannot exceed 3% of GDP and public debt cannot exceed 60%. (2) Investors are closely watching Indonesia's fiscal sustainability, especially President Prabowo's large-scale spending plans. Fitch Ratings (one of the two agencies that downgraded Indonesia's rating outlook this year) said that the possible changes to the fiscal and debt ceiling rules were one of the factors that led to the adjustment of its outlook. (3) Parliamentary Finance Committee Chairman Misbakkun said that members of parliament will soon draft a comprehensive bill to amend several financial laws at once to facilitate the establishment of the new sovereign wealth fund Danantara. When asked whether the fiscal rules would be adjusted, he said, "We haven't reached that point yet."
