Traders will be watching whether Indonesian President Prabowo Subianto’s state budget speech on Friday can convince investors that fiscal discipline remains a priority, helping restore confidence in the country’s battered assets. The speech is seen as a key test for the government’s ability to balance growth with budgetary restraint. Market participants hope the address will reassure them that the administration remains committed to fiscal responsibility despite political uncertainties.

Investor focus will zero in on whether the budget presents a credible path to keeping the deficit within the legal 3% of gross domestic product ceiling, as well as signs of further curbs to the free meal program spending. Clarity on revenues from the new commodity export body will also be scrutinized. Analysts also expect discussion on how the budget will fund infrastructure projects and social programs without breaching the deficit cap.

If Prabowo delivers a tight fiscal plan, it could lift the appeal of Indonesian assets, which have been under pressure from global rate hikes and domestic challenges. The government's pledge to tighten free meal program spending could free resources for priority sectors, watched closely by investors.

The outcome will shape market expectations for the remainder of the year and influence investment decisions across sectors.