Anindya Bakrie, chairman of the Indonesian Chamber of Commerce and Industry, has called for Indonesia to temporarily raise its legal fiscal deficit ceiling from 3% to between 4% and 5% in response to the ongoing global energy crisis, which has been intensified by geopolitical tensions in the Middle East [1]. Bakrie made these remarks during an interview in Tokyo on March 30, emphasizing that the unprecedented volatility in energy prices and supply risks necessitate extraordinary fiscal measures [1].
Currently, Indonesia enforces a fiscal deficit cap of 3% of gross domestic product. Bakrie's proposal aims to provide the government with greater fiscal space to implement energy subsidies and support measures, stressing that any increase should be temporary and accompanied by clear exit strategies [1]. He also suggested that Indonesia consider purchasing oil from Russia to secure stable and affordable energy supplies, noting that several Asian governments are already seeking Russian oil amid the crisis [1].
In addition to fiscal flexibility and alternative oil sourcing, Bakrie recommended a work-from-home policy to reduce energy consumption across industries and households. He argued that this would help ease pressure on fuel demand and transportation costs, which are being significantly impacted by the current situation [1].
The Indonesian Chamber of Commerce and Industry's proposals come at a time when the government has refrained from major interventions, despite mounting fiscal pressures from surging energy import costs. Bakrie warned that delayed responses could harm the economy and undermine business confidence, urging policymakers to act swiftly [1].
CONCLUSION
The Indonesian business lobby is advocating for temporary fiscal and policy adjustments to address the energy crisis, including raising the deficit cap, sourcing oil from Russia, and promoting work-from-home measures. These recommendations highlight concerns about rising energy costs and the need for swift government action. The market impact is medium, with sentiment leaning slightly negative due to the urgency and potential risks outlined.