Indonesia to Manage 2025 Budget Deficit Without Incurring New Debt

Strategic Use of Budget Surplus

The Indonesian government has announced plans to utilize Rp 85.6 trillion from the Budget Surplus (SAL) to offset the projected 2025 state budget deficit. This strategic decision ensures that the widening deficit will not lead to additional borrowing. According to Dirjen Pengelolaan Pembiayaan dan Risiko Kemenkeu, Suminto, the deficit is expected to reach 2.78% of GDP, wider than the initial target of 2.53%.

Fiscal Management Approach

The Ministry of Finance has obtained approval from the DPR to use the SAL funds for deficit coverage. This approach demonstrates the government's commitment to maintaining fiscal discipline while supporting economic growth. The decision to use existing surplus funds rather than incurring new debt reflects a cautious fiscal management strategy.

Economic Implications

The widening deficit to 2.78% of GDP indicates the government's continued efforts to support economic activities through fiscal measures. By using the SAL, the government aims to bridge the budget gap without increasing the national debt burden. This move is expected to maintain investor confidence and support economic stability in the short term.