Jakarta. Finance Minister Sri Mulyani admitted Thursday that the first half of 2024 was a tough ride, although the government managed to keep its budget deficit for the fiscal year in check. 

In the first half of 2024, the ministry reported that tax revenue had dropped by 7.9 percent year-on-year, reaching Rp 893.8 trillion ($55.1 billion).

"The first half of 2024 was tough. ... Our tax revenue had declined sharply at the time ..., but we managed to see a light at the end of the tunnel in August," Sri Mulyani said when kicking off the first trading day of 2025 at the Indonesia Stock Exchange building in Jakarta.

The capital market was also on a decline as the IDX Composite reached its lowest point in 2024.

The fiscal year saw Indonesia's holding the world's largest single-day election in February. Indonesia also held a regional election in November. It was also in the first quarter that Indonesia saw climate challenges, prompting the government to disburse assistance for farmers, including subsidized fertilizers. 

"But praise be to God, we wrapped up the year with a fiscal year report that is better than what we had earlier estimated. The state revenue has started to recover in the second half. ... We are also ramping up spending, be it on elections, capital relocation, and social assistance to alleviate climate change risks, among others. The public spending has helped mitigate the impact," Sri Mulyani said.

She also revealed that Indonesia managed to book a budget deficit that was much lower than what the government had estimated earlier. The government last year decided to raise the fiscal deficit cap from 2.29 percent to 2.7 percent. Sri Mulyani dropped a hint that Indonesia managed to end the 2024 fiscal year with a budget cap that is far below 2.7 percent. She added: "We have ended 2024 with a relatively healthy and safe budget report. This can become a strong asset for us to welcome the 2025 fiscal year."