'Too much too quickly': Indonesia's growth ambitions questioned by economists

Presidential candidate Prabowo Subianto, waves to photographers as he leaves after attending a dialog held by country's anti-graft agency Corruption Eradication Commission (KPK) at its headquarters in Jakarta, Indonesia, January 17, 2024.Willy Kurniawan | ReutersIndonesia may have trouble meeting its economic-growth goals for the coming year, after spending 2026 on the defensive amid questions about fiscal outlays and the prospects of a downgrade from MSCI.President Prabowo Subianto wants to lift economic growth to 6% in 2027 while keeping the fiscal deficit at 2.4% of GDP. That would mean accelerating from Indonesia's roughly 5% decade-long growth average while keeping the deficit below its 3% statutory ceiling. The draft budget sets eight priorities, including food and energy self-sufficiency. "They're trying to achieve too much too quickly," Ashok Bhundia, deputy chief economist at the Institute of International Finance, said, adding that "some of these targets are a little bit overly ambitious on timelines." Reaching 6% next year would likely require "an unanticipated commodity boom" that lifts exports, revenues and investment, he said.The plan comes as MSCI, the index provider...