The business community has called on the incoming government led by president-elect Prabowo Subianto to maintain fiscal discipline, particularly if it plans to widen the state budget deficit for increased spending. Experts believe that the Prabowo administration may have to exceed the 3 percent GDP limit set by law to fulfill campaign promises, a threshold that has historically ensured fiscal prudence within Indonesia.
Indonesian Employer Association (Apindo) chairwoman Shinta Kamdani emphasized the importance of discipline even if the deficit is expanded, stressing the need for transparency and clear allocation of funds. Apindo has provided input from various sectors to the next government, focusing on the importance of continuity and coordination among ministers in the upcoming administration.
One of the cornerstones of Prabowo’s campaign was a proposed free school lunch program estimated to cost Rp 400 trillion (US$30 billion) annually, representing a significant portion of the state budget spending and the country’s overall GDP. The Indonesian Chamber of Commerce and Industry (Kadin) chairman Arsjad Rasjid echoed this sentiment, warning that lack of discipline could be dangerous for the new government.
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