KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Indonesia has adjusted its 2025 budget deficit projections, indicating a smaller shortfall than previously estimated. This update provides key insights for those interested in global markets and the economy.
Key Updates:
Budget Deficit Adjustments:
- New Target Range: The 2025 budget deficit is now projected to be between 2.29% and 2.82% of GDP, lower than the previous lower estimate of 2.45%.
- Revenue Strategies: Indonesia plans to boost state revenues by expanding the tax base and optimizing fiscal incentives. Additionally, streamlining energy subsidies will free up more funds.
Economic Impact:
- Investor Confidence: Keeping the deficit below the legal limit of 3% of GDP aims to reassure investors, particularly as President-elect Prabowo Subianto prepares to implement new initiatives, such as a US$4.3 billion free meal project.
- Debt Ratio Target: Lawmakers approved a target debt ratio of 37.82%-38.71% of GDP for 2025, improving from roughly 39% this year. This move indicates a commitment to fiscal responsibility.
Growth and Stability:
- Economic Growth: Indonesia’s economy is expected to grow by 5.1%-5.5% in 2025, aligning with the average growth rate of the past decade.
- Inflation and Currency: The inflation target remains steady at 1.5%-3.5%, with the rupiah projected to appreciate to 15,300-15,900 per dollar.
Why It Matters:
For investors and those tracking global market trends, Indonesia’s proactive steps to manage its budget deficit and boost revenues highlight the country’s commitment to fiscal stability and sustainable growth. These measures are designed to maintain investor confidence and support economic resilience, making Indonesia an important market to watch.
Conclusion:
Indonesia’s revised budget deficit projections and fiscal strategies reflect a balanced approach to economic management. By keeping the deficit within legal limits and ensuring robust revenue streams, Indonesia is poised to maintain its economic stability and growth trajectory, offering promising opportunities for global investors.
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