Indonesia's State Budget Deficit Reaches Rp197 Trillion in the First Half of 2025

The Ministry of Finance reported that Indonesia's State Budget (APBN) in the first half of 2025 showed a deficit of Rp197 trillion, equivalent to 0.81% of the Gross Domestic Product (GDP).

This first-half APBN deficit widened compared to the first half of last year, which recorded a deficit of Rp77.32 trillion or 0.34% of GDP.

The increase in Indonesia's APBN deficit occurred because government spending exceeded government revenue.

In the first half of 2025, state revenue realization was recorded at Rp1,210.1 trillion, equivalent to 40% of this year's APBN target.

This revenue comprised tax revenue of Rp837.8 trillion, non-tax state revenue (PNBP) of Rp224.2 trillion, and customs and excise revenue of Rp147.5 trillion.

"State revenue contracted by 9% (year-on-year/yoy), influenced by the downward trend in the Indonesian Crude Price (ICP), the transfer of SOE dividends to BPI Danantara, and the limited VAT policy on luxury goods," said Finance Minister Sri Mulyani in a working meeting with the DPR Budget Board on Tuesday (1/7/2025).

Meanwhile, the realization of state expenditure in the first half of 2025 was higher, reaching Rp1,407.1 trillion or 38.8% of the APBN. This is approximately a 1% (yoy) increase compared to the first half of last year.

This expenditure consisted of central government spending, namely K/L and non-K/L spending of Rp1,006.5 trillion, and transfers to regions (TKD) of Rp400.6 trillion.