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Fiscal Sustainability in Indonesia: Policies and Progress

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  • Vid Adrison

Abstract

This paper investigates fiscal sustainability in Indonesia and draws comparisons with Malaysia and Thailand. The analysis encompasses an evaluation of fiscal rules, fiscal performance, and an assessment of fiscal sustainability across these three countries. Given that the Coronavirus Disease (COVID‐19) pandemic affected budget deficits in each country starting in 2020, the empirical assessment utilizes data from 2010 to 2019. Despite persistent fiscal deficits in each country, the results suggest that all three countries maintain fiscal sustainability. A more detailed analysis of the Indonesian case focuses on government revenue and expenditure. The discussion addresses challenges in these areas, aiming to identify feasible policy options for enhancing fiscal sustainability in Indonesia.

Suggested Citation

  • Vid Adrison, 2024. "Fiscal Sustainability in Indonesia: Policies and Progress," Asian Economic Policy Review, Japan Center for Economic Research, vol. 19(2), pages 224-247, July.
    • Handle: RePEc:bla:asiapr:v:19:y:2024:i:2:p:224-247
    DOI: 10.1111/aepr.12468
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    References listed on IDEAS

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    Cited by:

    1. Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2024. "ASEAN: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 19(2), pages 153-171, July.
    2. Cassey Lee, 2024. "Comment on “Fiscal Sustainability in Indonesia: Policies and Progress”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 19(2), pages 248-249, July.

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