{
    "success": true,
    "data": {
        "id": 1751166,
        "msgid": "president-takes-the-fiscal-stage-markets-begin-to-signal-caution-1779545866",
        "date": "2026-05-20 11:01:14",
        "title": "President Takes the Fiscal Stage; Markets Begin to Signal Caution",
        "author": "Gita Amanda",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Economy",
        "summary": "President Prabowo Subianto will read the Macro-Economic Framework and Key Fiscal Policy (KEM-PPKF) for the 2027 RAPBN, signalling a centralisation of fiscal policy under the President. The move has unsettled markets, raising questions about the openness of the policy process and whether decisions will be based on thorough analysis or political momentum.",
        "content": "<p>REPUBLIKA.CO.ID, JAKARTA \u2013 President Prabowo Subianto will directly\nread the Macro-Economic Framework and Key Fiscal Policy (KEM-PPKF) for\nthe 2027 RAPBN. This unusual step is seen as sending a strong signal\nthat the government\u2019s fiscal direction is increasingly centralised in\nthe President\u2019s hands. Chief economist of the Centre for Reform on\nEconomics (CORE) Indonesia, Yusuf Rendy Manilet, said that until now the\nKEM-PPKF document has been traditionally delivered by the Finance\nMinister as part of the technocratic process of preparing the APBN.\nHowever this time, the President has taken the stage because the\ndocument contains the government\u2019s priority programmes. \u2018In budget\npolitics, such symbols are important because they signal that fiscal\npriorities are not solely administrative, but also form part of the\ngovernment\u2019s major political agenda,\u2019 Yusuf said in a brief message on\nWednesday, 20 May 2026. He said the issue is not about authority.\nIndeed, constitutionally the President does have full authority to\ndetermine the direction of fiscal policy. But markets are believed to be\npaying attention to how the decision-making process is carried out. When\nbudget priorities are announced directly by the President in the highest\npolitical arena, the room for technocratic corrections is deemed to be\nnarrower. \u2018Markets are beginning to ask whether the process of policy\nformulation remains based on thorough studies or is moving too quickly\nto follow political momentum,\u2019 he said. Yusuf said market sensitivity\nhas become visible in the past few days. The Jakarta Composite Index\n(IHSG) has fallen quite sharply and the rupiah has weakened, while most\nregional stock exchanges have moved relatively more stable. He noted\nthat this condition shows the market seeing domestic factors increasing\nIndonesia\u2019s perceived risk. He cited rumours of the establishment of a\ncommodities exports agency that had circulated earlier. Although not yet\nofficial policy, the issue was seen as triggering investor concerns due\nto a lack of detailed explanations from the government. \u2018The main issue\nis not simply the substance of the policy, but the uncertainty of the\nprocess,\u2019 Yusuf said. He added that the market can basically tolerate\npolicy changes so long as the direction is clear, communications are\nconsistent, and the design is understandable. But when big ideas emerge\nwithout open analysis or early communication with business players,\ninvestors tend to form negative assumptions.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/president-takes-the-fiscal-stage-markets-begin-to-signal-caution-1779545866",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}