Indonesia Parliament Revises Finance Laws for $900 Billion Danantara, Leaving 3% Deficit Cap Untouched
Updated
Updated · Reuters · May 25
Indonesia Parliament Revises Finance Laws for $900 Billion Danantara, Leaving 3% Deficit Cap Untouched
8 articles · Updated · Reuters · May 25
Indonesia's parliament will soon begin drafting an omnibus bill to revise state finance laws, with the changes aimed at fitting the legal framework to sovereign wealth fund Danantara rather than loosening fiscal limits.
Mukhamad Misbakhun, head of parliament's financial commission, said lawmakers are "not heading into" changes to the 3% budget-deficit cap or the 60% debt ceiling that investors have closely watched.
The revision would transfer the designated holder of state investments from the finance minister to Danantara, including rerouting state-owned enterprise dividends to the fund and removing them from budget revenue.
The bill is due to move after work finishes on a separate financial system law revision that would broaden Bank Indonesia's mandate toward supporting economic growth.
Danantara, launched by President Prabowo and overseeing more than $900 billion in state-company assets, sits at the center of concerns over fiscal sustainability as he pursues 8% annual growth.
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