25 May 2026 | News & Feature

TFP W21 2026: Bigger targets require more daring tools

  • The Indonesian government continue to set a high target for growth in 2027, assuming a more benign global macroeconomic conditions.
  • However, challenges continue to persist as fiscal expenditures continue to outpace revenue in 2026, adding to the many imbalances that hitherto pressurised the Rupiah.
  • Difficulties in increasing the tax ratio in the short term may have compel the government to use unconventional fiscal strategies.