Indonesia sees smaller-than-expected budget deficit

Green target: Fishermen are seen on their boat as smoke rises from chimneys at the Suralaya coal power plant in Cilegon. Coal-fired power plants will be the first to be taxed next year. — AFP

JAKARTA: Indonesia’s finance minister narrowed her projection for the budget deficit this year and next, as an economic rebound, tax reforms and rising commodity prices lead to higher revenue.

The fiscal gap is set to reach 5.3% to 5.4% of gross domestic product (GDP) in 2021, compared with an earlier estimate for 5.8%, Finance Minister Sri Mulyani Indrawati said at the Washington office of Bloomberg News after participating in annual meetings of the International Monetary Fund and World Bank.