- Fiscal expansions in Q4 2023 translated positively to the GDP growth number, as transfer payments managed to sustain the consumption growth in lower-income households while the business sector continued to show a strong appetite for expansion.
- The banking sector continues to face limited deposit growth despite the surge in government spending, as the limited trickle-up effect from following the disbursement of fiscal handouts fails to compensate for the decline in household income.
- Despite its positive impact on growth, continued spending by the public and business sectors may not help to strengthen the Rupiah.
