- The Indonesian financial market seems to respond positively to the improving short-term fiscal outlook, but uncertainties remain given the slowing growth momentum.
- The proposed continuation of the debt restructuring program may have a neutral impact on the demand for loans, especially MSME loans given that MSMEs are in no shape to assume more loans amidst the challenging domestic condition.
- Slowing demand for loans from the private sector in the short term may prove to be more beneficial, given the expected higher government debt issuance in the upcoming months.
