Indonesia Jan-August Budget Deficit at 1.35% of GDP

Indonesia recorded a budget deficit of IDR 321.6 trillion (USD 19.38 billion) in the January–August 2025 period, equivalent to 1.35% of GDP, according to data released by the Finance Ministry on Monday.

During the same period, total revenues reached IDR 1,639 trillion, down 7.8% from the same period in 2024, while total spending rose 1.5% year-on-year to IDR 1,960 trillion.

“We need to speed up government spending until the year-end so we can meet the spending target,” said Finance Minister Purbaya Yudhi Sadewa, as reported by Reuters.

He previously emphasized that increased government expenditure through the end of the year is essential to support economic growth, which is targeted at 5.2% for 2025.

Indonesia has maintained a steady growth rate of around 5% in recent years, with Q2 2025 growth at 5.12%, the highest since 2023.