Prabowo's Fiscal Vision: Balancing Debt and Revenue in Indonesia

Indonesia's President-elect Prabowo Subianto plans to gradually increase the debt-to-GDP ratio while boosting tax revenues. He aims to fund campaign promises such as free meals for over 80 million Indonesians without drastically increasing national debt. Prabowo will implement tax reforms and a new revenue agency using technology.

Indonesia's incoming President, Prabowo Subianto, has announced plans to gradually increase the nation's debt-to-GDP ratio. This move, disclosed by his top adviser Hashim Djojohadikusumo, aims to balance financial commitments while enhancing tax revenue.

Monitoring agencies are scrutinizing Prabowo's economic strategies amid concerns about fiscal prudence. Earlier suggestions of increasing debt drew attention, but Prabowo reassures compliance with fiscal laws, maintaining limits on the budget deficit and overall debt.

A significant campaign promise involves providing free meals, costing 450 trillion rupiah. Prabowo plans substantial tax reforms, establishing a new revenue agency with tech-driven methods to meet revenue goals without raising tax rates.

(With inputs from agencies.)