Govt mulls lifting deficit cap amid high oil price - Jakarta’s priority is maintaining economic growth

Balancing uncertainty: An attendant refuels a truck with diesel in Jakarta. The president says that the administration might allow for a short-term increase of the deficit cap should oil prices stay elevated for a prolonged period. — Bloomberg

JAKARTA: The government has indicated that this year’s fiscal deficit may temporarily exceed the general legal limit for the sake of maintaining economic growth if oil prices remain high as war rages on in the Middle East.

President Prabowo Subianto said in a cabinet meeting last Friday that a “balanced budget is the most ideal”, stressing that he hoped the deficit would not exceed the cap set at 3% of gross domestic product.