Jakarta (ANTARA) - Permata Bank Chief Economist Josua Pardede\nbelieves that the appointment of Suahasil Nazara as the new Finance\nMinister can maintain the continuity of fiscal policy amidst the\nimplementation of the 2026 State Budget (APBN) and the preparations for\nthe 2027 State Budget.<\/p>\n
Josua stated that Suahasil\u2019s experience as Deputy Finance Minister\nmakes the leadership transition process at the Ministry of Finance\nrelatively smaller, as she already understands the management of\nrevenue, expenditure, financing, and fiscal policy coordination.<\/p>\n
\u201cIn general, I assess the appointment of Suahability Nazara as\nFinance Minister as tending towards the positive and relatively calming\nin terms of policy continuity,\u201d Josua told ANTARA in Jakarta on\nMonday.<\/p>\n
According to him, the challenge for the new Finance Minister is not\nonly to continue the management of the State Budget but also to maintain\nthe balance between efforts to increase economic growth, finance\npriority programmes, strengthen state revenue, and maintain fiscal\ncredibility.<\/p>\n
Josua predicts that the broad direction of fiscal policy will not\nchange drastically, although Suahasil\u2019s approach is likely to be more\nstructured and cautious, with an emphasis on the quality of spending and\nthe sustainability of financing.<\/p>\n
\u201cThe main advantage is the relatively small transition period while\nthe government is executing the 2026 State Budget and simultaneously\npreparing the 2027 State Budget,\u201d he said.<\/p>\n
However, he noted that Suahasil faces new challenges as she moves\nfrom a position as an assistant to decision-makers to being the primary\ndecision-maker in fiscal management.<\/p>\n
One urgent task, according to Josua, is to ensure that the\nimplementation of the 2026 State Budget can be closed credibly by\nmaintaining state revenue and priority spending without triggering\nuncontrolled expenditure surges at the end of the year.<\/p>\n
Additionally, Suahasil is deemed to need to re-test the 2027 fiscal\nassumptions and prepare scenarios in the event that economic growth,\nstate revenue, commodity prices, or exchange rates develop differently\nfrom government assumptions.<\/p>\n
In the provisional posture of the 2027 State Budget Draft (RAPBN)\nagreed upon by the government and the House Budget Committee on 7\nSeptember 2026, state expenditure was increased by Rp9.1 trillion to\nRp4,106.3 trillion. The budget deficit remains targeted at Rp671.2\ntrillion, or 2.40 per cent of Gross Domestic Product (GDP).<\/p>\n
Josua also believes that strengthening state revenue should be\nachieved through expanding the tax base, increasing compliance,\nimproving administration, and closing leakages, rather than relying on\nwidespread tax rate increases.<\/p>\n
According to him, such an approach is necessary so that the\nstrengthening of revenue does not place excessive pressure on\nconsumption or investment.<\/p>\n
\u201cSuahasil\u2019s first step should not be to make new breakthroughs, but\nrather to provide certainty,\u201d he said.<\/p>\n
He noted that such certainty is particularly needed regarding the\ndirection of the deficit, debt management, state revenue, and the\ngovernment\u2019s consistency in maintaining the principle of fiscal\nprudence.<\/p>\n
He expects the market response to Suahasil\u2019s appointment in the short\nterm to be neutral to positive due to the factor of continuity.<\/p>\n
Nevertheless, Josua believes that investor confidence will\nsubsequently be determined by the government\u2019s consistency in\nmaintaining fiscal discipline.<\/p>\n
\u201cThe Finance Minister\u2019s credibility is ultimately determined not only\nby technical ability but also by the courage to say no if a programme is\ntoo expensive, unproductive, or poses a fiscal risk that is\ndisproportionate to its benefits,\u201d he remarked.<\/p>\n
President Prabowo Subianto inaugurated Suahasil as Finance Minister\non Monday afternoon, replacing Purbaya Yudhi Sadewa.<\/p>\n
Suahasil previously served as Deputy Finance Minister since 2019.<\/p>\n
Prior to becoming Deputy Finance Minister, Suahasil served as the\nHead of the Fiscal Policy Agency of the Ministry of Finance.<\/p>\n
She served as the Acting Head of the Fiscal Policy Agency in 2015\nbefore being appointed to the definitive position in 2016.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/economist-values-suahasils-appointment-to-ensure-fiscal-policy-continuity-1789384087", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }