Nomura: Indonesia has room to increase tax, but it's tough for a new government to do that

Indonesia’s new administration is grappling with the complexities of rolling out extensive spending initiatives. As they aim to bolster economic growth and support infrastructure development, officials confront potential financial constraints and inflationary pressures. The government seeks to balance these investments with fiscal prudence to avoid exacerbating the national debt. Strategic allocation of resources becomes increasingly crucial amidst global economic uncertainties. The government’s efforts will be scrutinized as they strategize ways to stimulate economic expansion while maintaining financial stability.