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Significance

It has been slow in disbursing an IDR695.2tn (USD47.3bn) stimulus package designed to mitigate the economic fallout of the pandemic. More generally, several ministries are struggling to implement pandemic-related policies.

Impacts

The sizeable government-aligned coalition in the House of Representatives will stay intact despite the strain on the cabinet.

Debt levels will increase rapidly because of the COVID-19 stimulus package, although they should remain manageable.

The government will announce plans for further stimulus spending as the COVID-19 outbreak continues.

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