JAKARTA - Hashim Djojohadikusumo, brother of Prabowo Subianto Djojohadikusumo, Elected President of Indonesia, is announcing the plan of increasing debt ratio to 50% of Gross Domestic Products (GDP).

As quoted from Financial Times today (11/7), Hashim reportedly told the idea of increasing state income and debt ratio. “I have talked with World Bank, and they believe it is a sensible act,” he claimed.

According to Hashim, Prabowo and Gibran Rakabuming Raka, Elected President and Vice President, will not implement said policy without first, increasing state income through taxes, customs, non-tax income, dividend, royalty, and others.

This plan of increasing debt-to-GDP ratio will bring the ratio near threshold of 60% as stated in Law No.17/2003 regarding State Finance. As of now, Indonesia’s debt-to-GDP ratio is 39%.

The increase of debt-to-GDP ratio to 50% is said to drive budget deficit to the edge of maximum level allowed at 3% of GDP. (LK/ZH)