Indonesia Considers Raising 3% Deficit Cap Amid Growth Push

Indonesia is reviewing a statutory 3 % deficit cap that has governed government spending for over two decades. President Prabowo Subianto argues that easing the ceiling would allow the country to borrow more and invest aggressively to hit an 8 % annual growth target by 2029. Supporters see the cap as a growth barrier, while economists warn that loosening the rule could increase borrowing costs and erode investor confidence. The decision reflects a broader debate over fiscal discipline versus expansionary policy in Indonesia’s pursuit of rapid economic growth.