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Indonesia's 2025 budget deficit widens over pro-growth spending

Source: Xinhua | 2026-01-09 | Editor:Evan

Indonesia's state budget deficit widened to 695.1 trillion rupiah (about 41.28 billion U.S. dollars) by the end of 2025, as the government increased spending to support economic growth amid global headwinds, the country's finance minister said on Thursday.

Speaking at a press conference, Finance Minister Purbaya Yudhi Sadewa said state revenue totaled 2,756.3 trillion rupiah, while government spending reached 3,451.4 trillion rupiah, resulting in a deficit equivalent to 2.92 percent of gross domestic product (GDP).

"The deficit widened as the government needed to keep the domestic economy expanding amid elevated global pressures," he said.

The deficit exceeded both the initial budget target of 616.2 trillion rupiah, or 2.53 percent of GDP, and the revised outlook of 662 trillion rupiah. However, it remained below the statutory ceiling of 3 percent of GDP, Purbaya noted.

He said narrowing the deficit by cutting spending would have been counterproductive, as fiscal stimulus was needed at a time when economic momentum was softening.

By the end of 2025, government financing had reached 744 trillion rupiah, while the primary balance recorded a deficit of 180.7 trillion rupiah, reflecting an accommodative fiscal stance aimed at supporting priority programs and maintaining economic stability, the official said. 

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