Jakarta (ANTARA) - Finance Minister Suahasil Nazara has highlighted Indonesia’s fiscal credibility as a key factor in attracting foreign investment.
Speaking at an investor meeting hosted by Deutsche Bank in Bangkok, Thailand, on Tuesday, Suahasil emphasized the government’s commitment to keeping the state budget deficit below 3 percent of gross domestic product (GDP) while continuing to prioritize national development needs.
“Fiscal policy must be able to respond to various pressures, from geopolitics and trade to market volatility and domestic prices, without eroding our fiscal buffers for the future,” Suahasil said in a press release issued on Wednesday.
He added that the Indonesian government views investment as a key driver of long-term economic growth.
Under the 2027 State Budget, the government has set an economic growth target of 6 percent, supported by a target of 7 percent investment growth.
“To support this goal, the government is calling for greater synergy between fiscal policy, the role of sovereign wealth fund Danantara in strategic investment, and private-sector participation,” the minister said.
Director General of Financing and Risk Management at the Ministry of Finance, Suminto, added that the government was also focused on sustaining investor confidence over the long term.
To that end, the Finance Ministry has outlined a strategy to build and maintain investor trust.
First, the government aims to consistently strengthen economic credibility, performance, and stability across the fiscal, monetary, and financial sectors. It also regularly communicates economic performance, credibility, and policy direction to market participants and investors.
Second, the government remains committed to maintaining market discipline and integrity.
“This is vital to building a deeper, more active, and more liquid financial market,” Suminto said.
Third, the government is committed to deepening the financial market, particularly by strengthening the participation of domestic institutional and retail investors.
This, Suminto added, would help make the financial market not only more active and liquid but also more resilient to global financial developments.
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Translator: Imamatul Silfia, Raka Adji
Editor: M Razi Rahman
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