this post was submitted on 05 Sep 2025
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Chapotraphouse

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Indonesia is another victim of "sound" finance induced protests:

Instruction of President of the Republic of Indonesia Number 1 of 2025 on Budget Efficiency in Implementing the State Budget and Regional Budget 2025[1][2] is an instructional decree signed by President Prabowo Subianto on 22 January 2025, intended to streamline national and regional spending by cutting 306.69 trillion rupiahs (~$20b or ~8.5% of national budget). Its implementation has sparked numerous budget cuts and caused criticism by various parties

https://en.wikipedia.org/wiki/Presidential_Instruction_Number_1_of_2025

The Central cuts strained the local Government finances with 400%-1000% hike in land taxes in some areas.

Indonesia suspended its sound finance low fiscal deficit caps during COVID, but soon after reinstated it. Now its facing the consequences for it. With external sector squeeze due to Trump, its not looking good.

Its always neoliberal policies which create such protests but whatever replacement that comes does the same thing (or worse).

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