04 Dec 2023 | News & Feature

Overflowing confidence, tempering expectations

  • In addition to the softened global rate outlook, Indonesia's stable inflation and growth prospects may contribute to keeping the Rupiah stable in the upcoming period.
  • Increased fiscal spending during the election cycle could aid in replenishing the private sector's liquidity. However, the trickle-down effect, particularly on the lower segment of the population, may be constrained.
  • Higher tax revenue and modest increases in transfers to regional governments in 2024 might further restrict the overall impact of the expansion in central government spending on GDP growth.