Jokowi Slows Spending to Balance Growth With Curbing Deficit (3)

Indonesia has proposed slightly lower state spending next year that aims to support the pandemic-hit economy while maintaining the goal of gradually cutting the fiscal deficit.

The economy is projected to grow 5%-5.5% in 2022, higher than the 3.7%-4.5% forecast for this year, President Joko Widodo said in his budget speech to parliament earlier in the day. Investments and exports are expected to be the main growth drivers, aided by government spending of 2,708.7 trillion ($188.5 billion), slightly lower than the 2,750 trillion rupiah set for this year.

Indonesia faces a delicate balancing act between pushing an economic recovery ...