Indonesia’s Fiscal Response and Post-Crisis Sustainability

Abstract

This study examines the effectiveness of Indonesia’s fiscal policy implementation under Statutory Framework No. 2 of 2020 during the COVID-19 pandemic, as well as its implications for post-crisis accountability and long-term fiscal sustainability. Using a normative juridical approach, the research finds that the extraordinary fiscal measures introduced through this statutory framework played a crucial role in maintaining national economic stability and supporting recovery efforts amid unprecedented shocks. The policy enabled flexible budget reallocation, expanded fiscal space, and accelerated government intervention in strategic sectors. However, several challenges remain, particularly in strengthening governance mechanisms, ensuring transparent oversight, and improving the efficiency of public financial management. These issues highlight the continuing need for reforms in the public finance system. Enhancing digital infrastructure, promoting real-time data transparency, and deepening institutional integration are essential prerequisites for achieving resilient and sustainable fiscal governance in the post-pandemic era. The study underscores that while the statutory emergency measures were effective during the crisis, long-term sustainability