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The Fiscal Room for Stimulus

Indonesia can still afford to provide additional 10 percent of its gross domestic product to assist people who have lost their jobs and earnings due to the Covid-19 pandemic.

By
Gustav Papanek
· 6 minutes read
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Indonesia can still afford to provide additional 10 percent of its gross domestic product to assist people who have lost their jobs and earnings due to the Covid-19 pandemic.

This extra stimulus will raise the government’s fiscal deficit to 15 percent or above the present target of 5 percent, without causing inflation or rupiah exchange rate depreciation or mounting debts that are hard to manage.

Editor:
naranasrullah
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