Indonesia’s Budget Deficit Hits 1.24% of GDP
Jakarta. Indonesia’s budget deficit stood at 1.24% of gross domestic product (GDP) from January to September, Finance Minister Suahasil Nazara announced Thursday.
The shortfall had soared compared to the 0.93% deficit seen in end-August. Indonesia managed to stay away from breaching the 3% legal cap or the forecast of 2.68% of GDP. The fiscal deficit amounted to Rp 319 trillion ($17.8 billion) in the first nine months of 2026.
“From the get-go, we have designed our state budget for a deficit. We have intended to spend more than we earn,” Suahasil told Investor Daily Summit in Jakarta.
“We will ensure the credibility of our state budget so we can show that whatever we collect from our people shall be spent [on things] that will return to [or benefit] them.”
Indonesia’s state earnings totaled Rp 2,341.5 trillion (around $129 billion), about 74.2% of the full-year target. This marks a 25.5% year-on-year (yoy) growth. Spending soared 19% yoy to Rp 2,660.5 trillion (roughly $145 billion), which made up 69.2% of the budget ceiling, the presentation slides showed.
“Our state revenue is on track. ... Spending is relatively on track. We expect expenditure to pick up speed between November and December.”
Suahasil is expected to deliver the details to the press on Friday, including how much the government had spent for the cost-heavy schoolfeeding program.
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