Jakarta. The government announced Friday that the budget deficit reached 0.93% of the gross domestic product (GDP) as of the end of August, far from breaching the 3% legal cap.

At his debut budgetary conference, newly appointed Finance Minister Suahasil Nazara said Indonesia’s budget shortfall reached Rp 240.1 trillion ($13.5 billion). 

“Our state budget’s performance remained robust by the end of August. We recorded a positive primary balance and kept the deficit within limits. So our state budget is relatively on track,” Suahasil told the press in Jakarta.

The country’s state revenue hit Rp 2,055.69 trillion (at least $115 billion), up by 25.4% year-on-year (yoy). Receipts equal about 65.2% of the target. The government spent around Rp 2,295.7 trillion (at least $129 billion) in the first eight months of 2026, up about 17.1% yoy.

The primary balance is at Rp 154 trillion (almost $8.7 billion) in surplus.

Suahasil had only assumed the ministerial job on Monday after being the deputy minister since 2019. His predecessor, Purbaya Yudhi Sadewa, got fired after leading the ministry for only a year. 

The fiscal deficit forecast for 2026 is at 2.68% of GDP. Indonesia aims to keep the deficit between 1.8% and 2.4% next year. Lawmaker Mukhamad Misbakhun, who leads the parliamentary budget committee, recently floated plans on whether Indonesia could loosen the rigid 3% deficit ceiling, citing that changes might be necessary to add fiscal space.

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