Reported 3 days ago
Indonesia’s rupiah dropped nearly 1% following President Prabowo Subianto's unexpected decision to scale back a planned tax hike, prompting Finance Minister Sri Mulyani Indrawati to mitigate fears about the nation’s fiscal health. Despite the reduced value-added tax increase, which now only affects luxury goods, Indrawati mentioned that the budget deficit for 2024 would likely be significantly lower than earlier estimates, indicating a healthier fiscal position for the upcoming year. Investors, however, express concerns about regulatory uncertainty and government consistency, as the economy faces low growth and inflation levels.
Source: YAHOO