Breaking the 3% Straitjacket: Why Lawmakers Are Flirting With Indonesia’s Sacred Deficit Anchor - InvestorTrust
Breaking the 3% Straitjacket: Why Lawmakers Are Flirting With Indonesia’s Sacred Deficit Anchor - InvestorTrust
Source: InvestorTrust
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DW NOTE
Indonesia imposed the 3% deficit cap in 2003 after the rupiah collapsed to 16,000 per dollar and inflation hit 59%. Twenty-three years later, lawmakers want flexibility because infrastructure needs exceed tax capacity. The tell isn't that they're discussing it — it's that the anchor held through COVID, when most emerging markets blew past their own rules and never looked back.