The government plans to issue new debt amounting to Rp 323.4 trillion in the second quarter of 2021. Expenditure control is considered important to curb the budget deficit and the rising debt-to-GDP ratio.

The government’s decision to not revise the 2018 state budget despite changes in some of the macroeconomic assumptions will have no significant impact on the investment climate. Amid global economic uncertainty, investors need long-term fiscal incentives.

External factors, including global economic uncertainties, will add to the pressure on the Indonesian economy. Despite strong domestic economic fundamentals, it will be difficult to drive economic growth this year.