DEFICIT POTENTIAL TO WIDEN, MINISTRY ENSURES ECONOMIC MOVEMENT REMAINS SAFE

INDONESIA’S Finance Minister Purbaya Yudhi Sadewa has taken measures to ensure that the potential widening of the State Budget (APBN) deficit will not disrupt economic performance.

“There is a possibility that the deficit will rise slightly. However, it is crucial to emphasize that we are taking all necessary measures to ensure that the IPO process complies with all applicable laws and regulations,” Purbaya stated in an exclusive interview following the 2026 Indonesia Stock Exchange (IDX) Trading Opening Ceremony in Jakarta on Friday, (01/2), 2026.

Purbaya explained that the 2025 State Budget (APBN) deficit is expected to increase from the projected limit set in last semester’s report of 2.78%, due to the economic slowdown that occurred last year.

However, the Minister of Finance has stated that he has implemented various efforts to restore economic performance. As the economy improves, he guaranteed that the APBN deficit will be more manageable in the future.

“It is crucial to note that the economy is showing signs of growth, and corporate profits are also experiencing an uptick. This will automatically translate into higher stock prices,” he said.

For the record, the 2025 state budget deficit was revised from the initial target of 2.53% of Gross Domestic Product (GDP) to 2.78% of GDP. This revision took into account state revenues, which have fallen short of the set target.

The Ministry of Finance has reported that the state budget deficit was at 2.35% of Gross Domestic Product (GDP) as of November 30, 2025, with a value of IDR560.3 trillion.

State revenues were recorded at IDR2,351.5 trillion, equivalent to 82.1% of this year’s State Budget outlook projection of IDR2,865.5 trillion. Meanwhile, realized state spending was IDR2,911.8 trillion, equivalent to 82.5% of the projected IDR3,527.5 trillion.

Although state revenues are projected to fall short of the target (shortfall), Finance Minister Purbaya has consistently committed to maintaining the State Budget deficit below the 3% threshold stipulated by law. [antaranews]