Indonesia’s finance minister denied rumours of her imminent resignation and pledged to maintain fiscal discipline at a hurriedly called press conference announced after the country’s benchmark index plunged to a multi-year low on Tuesday.
Indonesian stocks fell as much as 7.1% on Tuesday and the rupiah slid to a two-week low against the dollar, pressured by concerns over the government’s fiscal strategy and growth prospects a day before a central bank review of monetary policy.
The drop, which also follows rumours of resignation of Sri Mulyani Indrawati in the market, also led to a 30-minute trading halt on breaching the 5% mark. “We are here, we are responsible,” she told a press conference. “I will not step down.” Sri Mulyani said adding state budget deficit will be maintained at 2.53% of GDP in 2025, below the 3% legal ceiling.