The 2022 Budget Deficit is capped at 4.85% or Rp 868.19 Trillion of GDP.

In the 2022 State Budget (RAPBN), the government set a budget deficit of Rp 868.19 trillion, or 4.85% of national Gross Domestic Product (GDP). This is lower than the 2021 (outlook) deficit of 5.82% of GDP.

The government targets state revenue in 2022 at Rp 1,840.66 trillion, a 6.04% increase from the 2021 (outlook) revenue of Rp 1,735.74 trillion. The target revenue for next year comprises Rp 1,840.08 trillion from domestic revenue and Rp 579.9 billion in grants.

Meanwhile, state expenditure next year is set at Rp 2,708.68 trillion, a 0.42% increase from the 2021 (outlook) expenditure of Rp 2,697.24 trillion. This comprises Rp 1,938.27 trillion in central government spending and Rp 770.42 trillion in transfers to regions and village funds.

The COVID-19 pandemic in 2020 caused the government's budget deficit to surge to Rp 947.7 trillion, or 6.14% of GDP. Before the pandemic, the deficit was only 2.2% of GDP. Both nominally and percentage-wise, this budget deficit was the largest in recent years. Based on the 2021 outlook, the budget deficit is estimated to reach Rp 961.49 trillion or 5.82% of GDP.

In determining the 2022 RAPBN, the government used basic macroeconomic assumptions of economic growth of 5.0-5.5% (year on year/yoy) and inflation of 3%. The Indonesian Rupiah exchange rate was set at Rp 14,350 per US dollar, and the State Debt Securities (SUN) interest rate at 6.82% per year.

Other macroeconomic assumptions include an Indonesian crude oil price of US$63 per barrel, oil lifting of 703 thousand barrels per day, and gas lifting of 1,036 thousand barrels of oil equivalent per day.