Indonesia's Budget Deficit Expands to 2.35% of GDP

Widening Deficit and Government Response

Indonesia's budget deficit has widened to 2.35% of GDP, equivalent to Rp 560.3 trillion, as of November 2025, according to the Ministry of Finance ¹

. This represents an increase from the 2.02% deficit recorded in October 2025. Despite the widening deficit, Finance Minister Purbaya Yudhi Sadewa assured that the figure remains within the safe and manageable limit, stating it is "still within the controlled and designed APBN boundary" ¹

Source 1

https://nasional.kontan.co.id/news/defisit-apbn-melebar-jadi-235-pdb-per-november-2025

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Regional Government Spending Update

The realization of regional government spending has reached Rp 922.5 trillion, or 65.3% of the total budget for 2025 ³

. While this represents a significant increase from the Rp 808.5 trillion recorded at the end of October 2025, Deputy Finance Minister Suahasil Nazara urged regional governments to accelerate their spending in December 2025 to maximize benefits for the community ³

Source 3

https://finance.detik.com/berita-ekonomi-bisnis/d-8266965/belanja-pemda-baru-65-kemenkeu-minta-digenjot-lagi

. The cash balance in regional government accounts decreased from Rp 230.1 trillion in October to Rp 218.2 trillion in November 2025, while the realization of transfers to regions reached Rp 795.6 trillion by the end of November ³

Source 3

https://finance.detik.com/berita-ekonomi-bisnis/d-8266965/belanja-pemda-baru-65-kemenkeu-minta-digenjot-lagi

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Challenges in Budget Execution

Suahasil Nazara acknowledged that accelerating government spending, both at the central and regional levels, during the remaining period of 2025 poses challenges ²

. The government is currently in the process of closing the fiscal year and preparing financial reports. While budget allocations have been locked in for various ministries and institutions, the execution remains complex.