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Indonesia’s new loan rules allow central government funding for development, targeting national programs and defense, while limiting debt to keep deficit below 3% of GDP.
Indonesia has launched new rules enabling the central government to lend funds to local governments and state-owned enterprises for national development, requiring parliamentary approval, strong financial health, and repayment terms over 12 months.
The move follows a 20% cut to 2026 regional autonomy funds to 693 trillion rupiah, redirecting resources to a nationwide free meal program for 83 million children and pregnant women and increased defense spending.
Loans may incur fines for late repayment, and local leaders warn reduced funding could lead to tax hikes and public unrest, while the government aims to keep its fiscal deficit under the 3% GDP limit.
Las nuevas reglas de préstamo de Indonesia permiten el financiamiento del gobierno central para el desarrollo, dirigido a los programas nacionales y la defensa, al tiempo que limita la deuda para mantener el déficit por debajo del 3% del PIB.