Indonesia posts sub-1% deficit as revenues surge and spending climbs
Indonesia's budget deficit stood at 0.93% of GDP by the end of August, while tax and non-tax revenues rose sharply and overall spending increased.
Indonesia reported a budget deficit of Rp240.1 trillion, or 0.93% of GDP, as of August 31, according to Finance Minister Suahasil Nazara. Revenue performance was robust, with overall state income up roughly 25% from the previous year, supported by tax receipts, customs and excise, and a 42% jump in non-tax revenue. Spending increased by about 17% year-on-year, with central government outlays growing nearly 30% and ministries and agencies expanding by over 30% and 25% respectively.
Transfers to regional governments, however, declined by nearly 12%. Despite the deficit, the primary balance remained in surplus, indicating fiscal capacity to manage debt obligations.
Why it matters
The figures show Indonesia's fiscal health, balancing a modest deficit with strong revenue growth and a surplus primary balance.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage highlights the sub-1% deficit, strong revenue growth and a primary-balance surplus as signs of fiscal strength, while centrist coverage stresses the government's commitment to stay within a 3% legal cap and its compliance with the law.
LEFT
Emphasizes the low deficit level, robust revenue gains and a surplus primary balance as evidence of fiscal health.
CENTER
Frames the budget as being managed within a legally defined 3% deficit ceiling and stresses compliance with that limit.
The left emphasises
- budget deficit of 0.93% of GDP
- revenues up roughly 25% year-on-year, with a 42% jump in non-tax revenue
- primary balance remained in surplus
How this story developed
- Sep 14 Kalimantan haze forces delays for 73 flights at Supadio Airport
- Sep 14 At a formal event in Jakarta's State Palace, President Prabowo Subianto inaugurated Suahasil Nazara as the new Minister of Finance, succeeding Purbaya Yudhi Sadewa. The change was enacted through Presidential Decree Number 97P of 2026, covering the rest of the 2024-2029 Red and White Cabinet term. Suahasil pledged loyalty to the 1945 Constitution and committed to implementing laws diligently. Both the president and the new minister signed the official inauguration record, and President Prabowo extended congratulations to Nazara and his family. Vice President Gibran Rakabuming, along with other coordinating ministers, attended the ceremony, making Nazara the third finance minister under Prabowo's leadership.
- Sep 14 Suahasil Nazara was appointed as Indonesia's finance minister, replacing Purbaya Yudhi Sadewa.
- Sep 17 Nazara pledged to keep the deficit under 3 % of GDP.
- Sep 17 Indonesia broadened its wildfire‑containment operations to additional provinces and national parks.
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