Budget Discipline under Threat

Yopie Hidayat

(Contributor)

Tempo

April 12, 2021

THE Covid-19 pandemic has hit Indonesia’s economy so severely. It was like a patient hanging on to life through a ventilator. That ventilator is Bank Indonesia (BI), who is pumping in liquidity to let the economy breathe.

BI’s pump is working hard, constantly buying government bonds directly. Using this money, the government is financing its deficit that has exploded due to the massive spending required to handle the pandemic and to

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