Standard Chartered has reviewed Indonesia’s fiscal plans for 2027, highlighting the government’s target to reduce the budget deficit to 2.4% of GDP, down from 2.9% in 2026, according to FX Street. The bank’s analyst Aldian Taloputra noted this proposed improvement in the deficit position as part of the upcoming fiscal strategy.
However, Standard Chartered remains cautious and continues to project a 2.9% deficit for 2027. The bank attributes this to the Indonesian government’s optimistic revenue assumptions and the risk of tax shortfalls, which could prevent the deficit from narrowing as planned.
For Japanese investors and markets, Indonesia’s fiscal outlook is a key factor in assessing risk and opportunities in Southeast Asia, especially given the country’s growing role in regional trade and finance.