Indonesia weighs lifting 3% deficit cap to fund Prabowo's 8% growth push

Indonesia is considering removing its statutory 3% fiscal deficit cap, a rule in place for over two decades, to enable higher government spending toward President Prabowo's 8% growth target by 2029. Economists warn that weakening the rule could raise borrowing costs and undermine investor confidence. The outcome is uncertain, but a shift would mark a significant fiscal policy reversal with direct implications for Indonesian sovereign risk and regional markets.