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IMF

IMF says Indonesia can afford wider deficit

By Katherine Demopoulos in Jakarta

Published: July 29 2009 12:16 | Last updated: July 29 2009 12:33

Indonesia should maintain fiscal stimulus into 2010 and could afford a wider budget deficit than currently planned, the International Monetary Fund said in its annual review published on Wednesday.

“Everybody’s happy with the way that Indonesia got through the crisis, that growth slowed down only moderately and that the banking system proved very resilient,” said Milan Zavadjil, senior resident representative for the IMF in Indonesia, adding that the IMF believed Indonesia could afford a higher fiscal deficit in 2010 than it currently plans.

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