Executive Summary

Key insights and market outlook

Indonesia's 2025 budget deficit reached Rp 695.1 trillion (2.92% of GDP), exceeding the initial target of 2.53% ³

⁴. State revenue reached Rp 2,756.3 trillion (91.7% of target), while state expenditure hit Rp 3,451.4 trillion (95.3% of target) ³. The government maintained spending despite weak revenue to support the economy during global pressures.

Full Analysis

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Deep Dive Analysis

Indonesia's 2025 Budget Deficit Expands to 2.92% of GDP

Overview of Budget Performance

Indonesia's 2025 budget deficit widened to Rp 695.1 trillion, representing 2.92% of GDP, according to Finance Minister Purbaya Yudhi Sadewa ³

. This figure exceeds the initial budget target of 2.53% of GDP, reflecting the challenging economic environment ⁴.

Revenue and Expenditure Analysis

State revenue reached Rp 2,756.3 trillion, achieving 91.7% of the annual target. The breakdown includes:

Tax revenue: Rp 1,917.6 trillion
Customs and excise: Rp 300.3 trillion
Non-tax revenue: Rp 534.1 trillion
Grants: Rp 4.3 trillion ³
Source 3
https://finance.detik.com/berita-ekonomi-bisnis/d-8297709/apbn-2025-tekor-rp-695-t-defisit-nyaris-sentuh-batas-aman

State expenditure was recorded at Rp 3,451.4 trillion, or 95.3% of the target. Central government spending reached Rp 2,602.3 trillion (96.3% of target), while transfers to regions amounted to Rp 849 trillion (92.3% of target) ¹

.

Policy Rationale and Future Outlook

The government maintained its spending despite weak revenue to support economic growth amid global pressures. Minister Purbaya emphasized that reducing expenditure during low revenue periods could harm economic expansion ⁴

. The 2026 budget has been planned with a deficit of Rp 689 trillion (2.68% of GDP) ⁶.

References