The Congressional Budget Office sees no diet in Washington. In contrast, the budget deficit is expected to average 6.1% of GDP over the next decade. The country has spent 14 percent of its tax revenue on interest payments, the highest amount since 1998.
"Long-term investors should not hold government bonds," Jefferies equity strategist Christopher Wood said.
In this global context, buying $350,000 worth of municipal bonds seems like a safe bet. Indonesia continues to maintain fiscal discipline, perhaps because the country is facing the global financial crisis.
Currently, Jakarta maintains a budget deficit limit of 3%, albeit at the expense of slow growth. The latest estimate for 2024 is 2.29 percent of GDP
This conservative attitude is a refreshing narrative in a world obsessed with leverage. From China to the European Union to the United States, investors are worried about excessive debt and potential financial crises ahead.
In contrast, Indonesian household debt is only 9% of GDP; in fact, less than 60% of its 274 million people have a bank account.
This equity landscape presents a huge opportunity for tech entrepreneurs who want to be more than passive investors and support fintech and financial inclusion. Mobile devices are everywhere: more people own smartphones than televisions or washing machines.
Social media platforms like TikTok are now the main channel for Generation Z. The people of Indonesia are connected to a chaotic, hateful, yet distant world.
And don't forget the sandy harbor, subtropical surfing and yoga. Last summer, on a meditation retreat there, I saw young digital nomads typing furiously on their laptops while sipping kombucha at a trendy coffee shop.
i'm jealous I wish I could go there. A Golden Visa for Indonesia is worth careful consideration.
