Experts Warn Indonesia’s Fiscal Stimulus Programs May Need to Continue into 2023

Economists have warned that the Government of Indonesia's fiscal stimulus programs may need to be continued into 2022 and even 2023, if domestic consumption and economic recovery remains weak.

Former Minister of Finance, Chatib Basri stated that the Government needs to consider extending its stimulus programs if customer demand is still weak and the private sector does not come into full effect by 2021, adding that focus should be given to programs that provide cash transfers for lower middle-income citizens, citing its efficiency in boosting domestic spending.

The Government has allocated a fiscal stimulus of IDR 695.2 trillion in 2020 to revive the economy still reeling from the i...