Luhut reports simulation results to Prabowo, economy stable for the next three months

Jakarta (ANTARA) - Head of the National Economic Council (DEN) Luhut Binsar Pandjaitan reported to President Prabowo Subianto that the results of economic simulations indicate the national economy is projected to remain stable in the next three months. “Based on the comprehensive simulations we conducted, our economic conditions in the next three months are still very safe and maintained. Our economic fundamentals are strong,” Luhut said in a written statement in Jakarta on Wednesday. Nevertheless, in line with the President’s directives, the government has formulated various anticipatory policy scenarios as mitigation steps if geopolitical tensions last longer than expected. One of the main focuses of these anticipatory measures is to mitigate the potential surge in energy prices, particularly regarding the widening gap between global crude oil prices and domestic fuel prices. From a fiscal resilience perspective, the government guarantees that the State Revenue and Expenditure Budget (APBN) will remain within a healthy and controlled corridor. The fiscal deficit will be tightly controlled below 3 percent of Gross Domestic Product (GDP), through measured spending efficiency and optimisation of revenues from key export commodity sectors, such as coal and palm oil. “The public and business community need not worry, the APBN is still very much under control. The deficit will be kept below 3 percent through appropriate spending efficiency, and maximising the momentum of export commodity prices to strengthen state revenues,” he stated.