Yogyakarta, August 2024 – CELIOS released the report “10 Fiscal Gaps from the Joko Widodo Administration,” which identifies ten major fiscal challenges Indonesia faced during President Joko Widodo’s two terms. The report highlights stagnant economic growth at 5.1%, a widening budget deficit from IDR 226.69 trillion to IDR 616.19 trillion, and a debt-to-GDP ratio rising from 24.7% to 39.13%. Media Wahyudi Askar, CELIOS’ Director of Public Policy, emphasized, “Fiscal policies over the past decade have not shown substantial improvement in strengthening the national economic base.”
CELIOS also found that debt financing consistently accounted for over 75% of the total budget, while productive investment never exceeded 17.5%. Ambitious projects such as the construction of the new capital city, Nusantara, and the Jakarta-Bandung high-speed railway were deemed to place a burden on the state budget. Achmad Hanif Imaduddin, a CELIOS researcher, stressed, “We see an urgent need for comprehensive reforms to ensure fiscal sustainability in the future.”
The report recommends fiscal reforms, including taxation for ultra-wealthy individuals, inclusive tax incentives, and improvements to the quality of public spending through a redesign of the state budget (APBN) and increased funding for health and social protection. Hanif added, “Comprehensive and progressive intervention is needed to maintain fiscal stability and ensure Indonesia’s economy remains resilient.” The report is expected to guide policymakers in developing more sustainable and equitable fiscal strategies.
CELIOS released its report, “10 Fiscal Gaps from the Joko Widodo Administration" identifying ten major fiscal challenges Indonesia faced during President Joko Widodo’s two terms. The report highlights stagnant economic growth at 5.1%, a widening budget deficit from IDR 226.69 trillion to IDR 616.19 trillion, and a debt-to-GDP ratio rising from 24.7% to 39.13%. Media Wahyudi Askar, CELIOS’ Director of Public Policy, emphasized, “Fiscal policies over the past decade have not shown substantial improvement in strengthening the national economic base.”
CELIOS also found that debt financing consistently accounted for over 75% of the total budget, while productive investment never exceeded 17.5%. Ambitious projects, such as the new capital city Nusantara and the Jakarta-Bandung high-speed railway, have added pressure on the state budget. Achmad Hanif Imaduddin, a CELIOS public policy researcher, noted, “We see an urgent need for comprehensive reforms to ensure fiscal sustainability in the future.”
The report recommends fiscal reforms including taxation for ultra-wealthy individuals, more inclusive tax incentives, and improving public spending quality through APBN redesign and strengthening health and social protection budgets. Hanif added, “Comprehensive and progressive intervention is needed to maintain fiscal stability and ensure Indonesia’s economy remains resilient.” The report is intended to guide policymakers in crafting more sustainable and equitable fiscal strategies.