Indonesia's State Budget Deficit Reaches Rp 138.06 Trillion by April 2021

The Ministry of Finance (Kemenkeu) recorded a state budget deficit (APBN) of Rp 138.06 trillion (approximately US$9.5 billion) by April 2021. This amount is equivalent to 0.83% of the Gross Domestic Product (GDP). Furthermore, this deficit represents 13.72% of the 2021 APBN target of Rp 1,006.4 trillion (approximately US$69 billion).

The APBN deficit up to April 2021 was caused by higher government spending compared to revenue. Specifically, state revenue reached Rp 584.99 trillion (approximately US$40 billion) in April 2021, a 6.47% increase from the same period the previous year. This realization has reached 33.5% of the 2021 APBN target.

Meanwhile, government spending reached Rp 723.05 trillion (approximately US$50 billion), a 15.9% increase from the same period the previous year (Rp 623.86 trillion or approximately US$43 billion). This realization has reached 26.29% of the 2021 APBN target.

For information, the government has relaxed the APBN deficit limit to more than 3% of GDP during the Covid-19 pandemic. The Kemenkeu, in the 2021 APBN Financial Note, explained that Indonesia has begun its economic recovery, and therefore will undertake fiscal consolidation and rehabilitation, reflected in the budget deficit target of 5.7% of GDP this year.

This deficit is lower than the previous year's 6.09% of GDP. The target will continue to decrease until it returns to below 3% of GDP.