{
    "success": true,
    "data": {
        "id": 1619659,
        "msgid": "indonesia-maintains-3-per-cent-deficit-cap-amid-middle-east-geopolitical-tensions-1773734186",
        "date": "2026-03-17 12:22:32",
        "title": "Indonesia maintains 3 per cent deficit cap amid Middle East geopolitical tensions",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Finance",
        "summary": "President Prabowo Subianto has affirmed Indonesia's commitment to maintaining its 3 per cent budget deficit limit despite potential economic spillovers from the Middle East conflict, viewing fiscal discipline as essential unless facing major emergencies. However, the Coordinating Minister for Economic Affairs warned that extending the conflict beyond six to ten months would make maintaining the deficit target \"difficult,\" prompting the government to plan additional budget cuts across ministries and agencies whilst exploring alternative energy sources including palm oil, coal, and renewables to counter potential supply disruptions.",
        "content": "<p>Jakarta (ANTARA) - President Prabowo Subianto said Indonesia will not\nraise the 3-percent deficit limit to gross domestic product (GDP)\ndespite potential economic spillovers from the war in the Middle\nEast.<\/p>\n<p>\u201cThe deficit limit is a good tool to discipline ourselves. We have no\nplan to alter it unless we have major emergencies, such as during the\nCOVID-19 pandemic,\u201d the president said in a recent interview with\nBloomberg.<\/p>\n<p>As confirmed by a Government Communications Agency (Bakom) statement\non Monday, Prabowo explained that the deficit limit is an important\ninstrument of discipline for the nation\u2019s fiscal policy established by\nlaw.<\/p>\n<p>\u201cI hope we will not change it,\u201d he added.<\/p>\n<p>In the same interview, the president believed that Indonesia is in a\nmore fortunate situation compared with other countries, as the world is\nfacing uncertainties due to the ongoing war between the United States,\nIsrael, and Iran.<\/p>\n<p>Amid the threat of an energy crisis due to disruptions in the Strait\nof Hormuz, Prabowo said Indonesia would optimize its alternative\nresources, such as palm oil and coal, which are relatively more\naffordable and can help meet the country\u2019s energy demand.<\/p>\n<p>At the same time, Indonesia will also harness renewable energy\nsources, including geothermal, solar, wind, and biofuels.<\/p>\n<p>\u201cIf we can overcome this, we will be highly efficient in two years \u2026\nwe will be free, free from dependence on external sources,\u201d he\nstressed.<\/p>\n<p>During a plenary cabinet meeting last week, Coordinating Minister for\nEconomic Affairs Airlangga Hartarto informed the president that it would\nbe \u201cdifficult\u201d for Indonesia to maintain the 3-percent deficit limit if\nthe war in the Middle East were to extend beyond six to ten months.<\/p>\n<p>Meanwhile, also on Monday, Finance Minister Purbaya Yudhi Sadewa said\nthat the government is planning another round of budget cuts in\nministries and agencies to ensure Indonesia can maintain the deficit\nlimit.<\/p>\n<p>Related news: Indonesia urges Eid homecomers to boost village\neconomy, development<\/p>\n<p>Related news: Ministry urges universities to play role in bolstering\nlocal economy<\/p>\n<p>Related news: Weaving the future of creative economy<\/p>\n<p>Indonesia keeps 3-pct deficit cap as Mideast war looms over\neconomy<\/p>\n<p>March 17, 2026 11:59 GMT+700<\/p>\n<p>President Prabowo Subianto and Red and White Cabinet ministers before\nthe plenary cabinet meeting at the State Palace in Jakarta on Friday\n(March 13, 2026). ANTARA\/HO-Presidential Secretariat\u2019s press\nbureau\/aa\/nbl.<\/p>\n<p>Translator: Genta Tenri M, Nabil Ihsan<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesia-maintains-3-per-cent-deficit-cap-amid-middle-east-geopolitical-tensions-1773734186",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}