{
    "success": true,
    "data": {
        "id": 1724090,
        "msgid": "deputy-finance-minister-accelerating-government-spending-to-boost-growth-1778156593",
        "date": "2026-05-07 16:35:24",
        "title": "Deputy Finance Minister: Accelerating government spending to boost growth",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's Deputy Finance Minister, Juda Agung, explained that the government's high spending in the first quarter of 2026, growing 21.8% year-on-year with a budget deficit of 0.93% of GDP, is intentionally designed to drive economic growth from the start of the year, ensuring even impacts across all quarters. He highlighted Indonesia's 5.61% GDP growth as superior to many regional peers amid geopolitical uncertainties, supported by strong fundamentals like stable inflation at 2.42%, a deficit below 3%, and debt-to-GDP at 40%. Additionally, debt financing remains on track, and the performance of government securities indicates sustained investor confidence in Indonesia's fiscal health.",
        "content": "<p>Jakarta (ANTARA) - Deputy Finance Minister (Wamenkeu) Juda Agung\nstated that the high government spending in the first quarter of 2026 is\nindeed designed to boost economic growth from the beginning of the year.\nGovernment spending in the first quarter of 2026 grew by 21.8 per cent\nyear-on-year (yoy), with a budget deficit reaching 0.93 per cent of\nGross Domestic Product (GDP) or Rp240.1 trillion. \u201cThis is what has been\nhighlighted a lot\u2014the deficit in one quarter already at 0.93 per cent.\nBecause this is by design, the government wants economic growth not at\nthe end of the year, spending not in quarter IV, but spending starting\nin quarter I, so that the impact will be even throughout the year, in I,\nII, III, and IV,\u201d he said during the Rakorbangpus (Central Development\nCoordination Meeting) 2026 in the Context of Preparing the RKP\n(Government Work Plan) for 2027 in Jakarta on Thursday. Amid\ngeopolitical uncertainties due to military conflicts in West Asia\ninvolving the US, Juda praised Indonesia\u2019s economic growth achievement\nof 5.61 per cent, driven by various government policies. Compared to\nother countries such as Malaysia, China, Singapore, South Korea, and the\nUS, Indonesia\u2019s economic growth in the first quarter of 2026 is higher,\nsurpassed only by Vietnam. However, he emphasised that Indonesia\u2019s\nfundamentals are better than Vietnam\u2019s, reflected in Vietnam\u2019s foreign\nexchange reserves below 3 months of imports, while Indonesia\u2019s approach\n6 months. Another positive note is the 2.42 per cent inflation rate,\nsuspected to be the lowest and stable in recent years. This indicates\nthat Indonesia\u2019s economic growth is high, with maintained stability.\nLikewise, Indonesia\u2019s budget deficit can be kept below 3 per cent, and\ndebt to GDP remains at 40 per cent. \u201cThis is what we need to maintain\ntogether, how we can grow high, but on the other hand, economic\nstability in both the short and long term can still be maintained well,\u201d\nsaid the Deputy Finance Minister. Furthermore, debt financing is still\nwell managed, currently reaching 35.1 per cent of the state budget or\nRp256.7 trillion from the beginning of the year to 31 March 2026. Debt\nfinancing fulfilment is on track through anticipatory measures and\nactive cash and debt management to ensure adequate government cash\navailability and a strong remaining budget balance (SAL). Additionally,\nthe performance of the Government Securities (SBN) market remains good,\neven though the yield on US 10-year bonds temporarily rose but then\nstabilised again. \u201cIf the yield can still be maintained like this, what\ndoes it mean? It means that both domestic and global investors still\ntrust our fiscal condition. If the fiscal condition were poor, it would\ncertainly rise sharply as during the crises in 2008, 2018, and so on.\nBut now it can be maintained well,\u201d he said. Compared to countries like\nthe Philippines, India, South Africa, Mexico, and Brazil, the US 10-year\nbond yield spread is relatively low at 237 basis points (bps) as of 4\nMay 2026 year-to-date (YTD). \u201cWe can still maintain the spread, and this\nshows that confidence in our fiscal position is still quite strong,\u201d\nstated Juda Agung.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/deputy-finance-minister-accelerating-government-spending-to-boost-growth-1778156593",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}