Indonesia's 2025 Budget Deficit Approaches 3% of GDP

Government Urges Calm Amid Rising Deficit

Indonesia's 2025 budget deficit is projected to reach 2.92% of Gross Domestic Product (GDP), totaling Rp695.1 trillion. Minister of Economic Affairs, Airlangga Hartarto, has urged the public not to be alarmed by this figure, pointing out that other countries are managing with even higher deficit levels.

International Comparison Provides Context

Airlangga emphasized that several countries are operating with budget deficits twice as large as Indonesia's without significant concern. This comparison was made during the Indonesia Business Council (IBC) event held at Hotel Mulia, Jakarta, on January 14, 2026. The Minister's statement aims to provide reassurance amid concerns about the country's fiscal health.

Economic Implications and Future Outlook

The budget deficit projection has sparked discussions about Indonesia's fiscal management. While some express concern about the potential long-term implications, others note that strategic government spending can help stimulate economic growth. The government's ability to manage the deficit while supporting development initiatives will be closely monitored in the coming months.