Editing Economy of Indonesia (section)

==Public expenditure==
In 2015, total public spending was Rp 1,806 trillion (US$130.88 billion, 15.7% of GDP). Government revenues, including those from state-owned enterprises (BUMN), totaled Rp 1,508 trillion (US$109.28 billion, 13.1% of GDP) resulting in a deficit of 2.6%.<ref name="wbieq17">{{cite web|title=Indonesia Economic Quarterly – January 2017|date=5 May 2013|pages=1–9|url=http://pubdocs.worldbank.org/en/498431484555383546/IEQ-JAN-2017-ENG.pdf|publisher=World Bank|access-date=18 August 2017|last1=Procee|first1=Paul|archive-url=https://web.archive.org/web/20170204202327/http://pubdocs.worldbank.org/en/498431484555383546/IEQ-JAN-2017-ENG.pdf|archive-date=4 February 2017|url-status=dead}}</ref> Since the 1997 crisis that caused an increase in debt and public subsidies and a decrease in development spending, Indonesia's public finances have undergone a major transformation. As a result of a series macroeconomic policies, including a low budget deficit, Indonesia is considered to have moved into a situation of financial resources sufficiency to address development needs. Decentralization, enacted during the Habibie administration, has changed the manner of government spending, which has resulted in around 40% of public funds being transferred to regional governments by 2006.

In 2005, rising international oil prices led to the government's decision of slashing fuel subsidies. It led to an extra US$10 billion for government spending on development,<ref name="worldbank1">{{cite web|url=http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/280016-1168483675167/PEReport.pdf|title=Spending for Development: Making the Most of Indonesia's New Opportunities Indonesia Public Expenditure Review 2007|access-date=29 August 2011|archive-url=https://web.archive.org/web/20070809233828/http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/280016-1168483675167/PEReport.pdf|archive-date=9 August 2007|url-status=dead}}</ref> and by 2006, there were an additional 5 billion due to steady growth, and declining debt service payments.<ref name="worldbank1"/> It was the country's first "fiscal space" since the revenue windfall during the 1970s oil boom. Due to decentralization and fiscal space, Indonesia has the potential to improve the quality of its public services. Such potential also enables the country to focus on further reforms, such as the provision of targeted infrastructure. Careful management of allocated funds has been described as Indonesia's main issue in public expenditure.<ref name="worldbank1"/><ref>{{cite web|url=http://www.dlprog.org/ftp/download/Public%20Folder/test%20folder/The%20Politics%20of%20Free%20Public%20Services%20in%20Decentralised%20Indonesia.pdf|title=The Politics of Free Public Services in Decentralized Indonesia|access-date=3 March 2015|archive-url=https://web.archive.org/web/20120330223634/http://www.dlprog.org/ftp/download/Public%20Folder/test%20folder/The%20Politics%20of%20Free%20Public%20Services%20in%20Decentralised%20Indonesia.pdf|archive-date=30 March 2012|url-status=dead}}</ref>

In 2018, President [[Joko Widodo]] substantially increased the amount of debt by taking foreign loans. Indonesia has increased the debt by Rp 1,815 trillion compared to his predecessor, SBY. He has insisted that the loan is used for productive long-term projects such as building roads, bridges, and airports.<ref>{{Cite web|url=https://nasional.kompas.com/read/2018/10/23/07584441/jokowi-utang-indonesia-kecil-dibanding-negara-lain|title=Jokowi: Utang Indonesia Kecil Dibanding Negara Lain|last=Ihsanuddin|editor-last=Maharani|editor-first=Dian|publisher=Kompas Cyber Media|location=[[Jakarta]]|date=2018-10-23|website=KOMPAS.com|language=id|access-date=2018-12-18}}</ref> Finance Minister [[Sri Mulyani]] also stated that despite an increase of foreign loans and debt, the government has also increased the budget for infrastructure development, healthcare, education, and budget given to regencies and villages.<ref>{{Cite web|url=https://katadata.co.id/berita/2018/10/23/sri-mulyani-jelaskan-manfaat-kenaikan-utang-rp-1329-t-di-era-jokowi|title=Sri Mulyani Jelaskan Manfaat Kenaikan Utang Rp 1.329 T di Era Jokowi - Katadata News|website=katadata.co.id|last=Alika|first=Rizky|date=23 October 2018|access-date=2018-12-18}}</ref> The government is insisting that foreign debt is still under control, and complying with relevant laws that limit debt to be under 60% of GDP.<ref>{{Cite web|url=http://vibiznews.com/2018/12/17/utang-luar-negeri-indonesia-tetap-terkendali/|title=Utang Luar Negeri Indonesia Tetap Terkendali {{!}} Vibiznews|last=Belinda|date=17 December 2018 |language=en-US|access-date=2018-12-18}}</ref>