Indonesia’s Government Sets 2021 State Budget Deficit to 4.7% of GDP

The Government and House of Representatives of Indonesia have agreed to set the 2021 state budget deficit at up to 4.7% of gross domestic product (GDP), with the aim of supporting economic recovery following the COVID-19 pandemic.

According to Muhidin Mohamad Said, Vice Chairman of the House Budget Committee of Indonesia, the budget deficit is expected to reach 3.21% - 4.17% of GDP in 2021, but the government has the option to widen the fiscal deficit to 4.7% if necessary, in order to fully support the economic recovery, boost human development, as well as increase industrial and tourism development.

According to local media, Indonesian...