The government is planning a balanced State Budget. This could trigger huge new debts.
PRESIDENT Prabowo Subianto is paying extra close attention to state debt. When he was still in opposition, he was a vocal critic of President Joko Widodo’s debt policy. Prabowo repeatedly said that the mountain of debt meant that Indonesia was being dictated by foreign interests and that its assets were leaking overseas.
Now, more than a year after Prabowo became president, Indonesia is still unable to escape from debt. The total is estimated at around Rp9,600 trillion. This is Rp1,000 trillion higher than when Prabowo replaced Jokowi in October 2024.
In the future, it seems that the…