Overview

• The 2024 budget deficit is now projected at 2.7% of GDP, up from the initial 2.29% forecast.
• Government spending surged by 87 trillion rupiah, driven by higher subsidy costs and election-related expenses.
• The rupiah's depreciation to a four-year low against the dollar has strained the budget.
• Despite the deficit, Indonesia plans to reduce bond issuance by utilizing cash reserves from the previous year.
• Central Bank may consider monetary easing in the fourth quarter to support economic growth.