Jakarta. As Indonesia nears the end of the year, the 2025 state budget remains on solid footing, recording a Rp 371.5 trillion ($22.4 billion) deficit, equal to 1.56 percent of GDP — well below the 2.78 percent target.

Finance Minister Purbaya Yudhi Sadewa said the country’s fiscal fundamentals remain strong despite revenue challenges. He noted a primary balance surplus of Rp 18 trillion ($1.1 billion), which he described as proof of continued fiscal discipline and consolidation.

“Up to the third quarter of 2025, the APBN continues to perform solidly with a deficit of only 1.56 percent of GDP and a positive primary balance,” Purbaya said. “This shows that our fiscal policy remains adaptive and credible, supporting economic recovery while safeguarding long-term sustainability.”

To plug the gap, the government has secured Rp 458 trillion in loans, up 31.7 percent from the same period last year. On the revenue side, state receipts reached Rp 1,863.3 trillion ($112.3 billion), comprising Rp 1,516.6 trillion from taxes and Rp 344.9 trillion from non-tax sources, while expenditures totaled Rp 2,234.8 trillion ($134.7 billion).

Purbaya acknowledged that revenue collection has faced headwinds due to weaker global commodity prices, which have dampened corporate income tax and VAT receipts.

“Revenue pressures mostly come from the decline in global commodity prices, especially in oil and mining,” he said. “However, manufacturing and services sectors remain strong contributors to our tax base.”

On the spending front, Purbaya said fiscal resources continue to be directed toward “high-impact priorities.” “Our spending is focused on areas that deliver the greatest benefit for people and growth, social assistance, infrastructure, and capital investment,” he said.

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