Prabowo Wants Indonesian Nation to Live Within Its Means

President Prabowo Subianto has outlined that the fundamental principle guiding his administration is ensuring the Indonesian nation lives within its means.

The Head of State revealed this position during an exclusive interview with international media Bloomberg, published in an article titled “Prabowo Open to Breach Indonesia Deficit Cap Only During Crisis”. In the piece, Prabowo expressed his commitment to maintaining fiscal discipline in managing Indonesia’s economy.

Prabowo stated that from childhood, his parents taught him to believe that spending must be aligned with capacity. “Do not spend more than what we earn,” Prabowo said at Hambalang, West Java, as cited from a statement by Indonesia’s Government Communications Agency.

“That is the fundamental principle of life for survival,” he continued.

Prabowo stated the government would maintain the budget deficit ceiling of 3 per cent of gross domestic product (GDP). The General Chairman of Gerindra Party emphasised that the 3 per cent budget deficit rule would only be changed in the event of a severe crisis.

Prabowo described the deficit ceiling as an important instrument for maintaining discipline in state financial management. “The deficit ceiling is a good tool to discipline ourselves. We have no plan to change it unless there is a very large emergency situation like Covid-19,” Prabowo said. “I hope we do not need to change it.”

Indonesia has maintained a maximum budget deficit ceiling of 3 per cent of GDP since the early 2000s, following the Asian financial crisis. This provision has long been claimed as one of the pillars of fiscal discipline observed by investors.

Prabowo also emphasised his commitment to fiscal discipline, despite many other countries having abandoned strict budget deficit targets. He noted that Indonesia previously sought to emulate European Union rules that limit fiscal deficits to a maximum of 3 per cent of GDP. However, many countries in the region no longer adhere to this.

Prabowo assessed that Indonesia is more fortunate than other nations, as Indonesia possesses natural resources such as palm oil and coal that remain relatively affordable and can guarantee national resilience.

Concurrently, the government will continue to develop geothermal, solar, hydroelectric, and biofuel energy as alternative energy sources. “If we can get through this, in two years we will become very efficient,” Prabowo said. “We will be very, very independent from outside sources.”