Indonesia looks to raise fiscal deficit limit to tackle coronavirus, USD/IDR consolidates near record highs
|Said Abdullah, the Head of Indonesia's parliamentary budget committee, recommended the government raise a cap on the state budget deficit to 5% of GDP, to allow for more budget maneuvering as it tackles the spread of coronavirus, per Reuters.
The Finance Ministry has already widened its deficit estimate to around 2.5% of GDP this year but remains open to raise the limit further if needed.
USD/IDR reaction
USD/IDR is off the record highs reached on Monday at 17,154 but trades close to it near 16,500 levels, at the time of writing.
The stimulus measures likely to be undertaken by the Indonesian government are offering some respite to the IDR bulls while broad-based US dollar weakness on the Fed’s aggressive QE announcement also collaborates with the pullback in the spot.
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