Societe Generale highlights front-loaded spending and a primary balance deficit as key risks to Indonesia’s fiscal outlook.
Indonesia’s fiscal position is expected to weaken by early 2026 due to rising expenditures and a primary balance deficit. Analysts point to front-loaded spending as a primary driver of the deterioration, increasing financing pressures on the government.
The deficit reflects broader fiscal challenges, though no specific figures were provided for comparison. Earlier projections had suggested a more stable outlook, but recent trends indicate a shift toward higher borrowing needs.
Markets may react cautiously as investors assess the potential impact on sovereign debt and economic stability.