Indonesia's State Budget Deficit Surges to Rp321 Trillion by August 2025

According to the Ministry of Finance's report, Indonesia's State Budget (APBN) deficit reached Rp321.6 trillion by August 2025, equivalent to 1.35% of the Gross Domestic Product (GDP).

This period's APBN deficit surged 109.6% year-on-year (yoy) compared to August of the previous year, which was Rp153.4 trillion or 0.69% of GDP.

The increase in Indonesia's APBN deficit is due to swelling government spending and a decrease in state revenue.

Government spending realization until August 2025 reached Rp1,960.3 trillion, up 1.5% (yoy).

Meanwhile, state revenue realization until August 2025 reached Rp1,638.7 trillion, down 7.8% (yoy).

Finance Minister Purbaya Yudhi Sadewa highlighted the primary balance, which is the difference between state revenue and expenditure without considering debt interest payments.

From the beginning of the year until August 2025, Indonesia's APBN primary balance remained in surplus at Rp22 trillion.

According to Purbaya, this indicates there is still room to accelerate the realization of government spending.

"This acceleration is necessary so that the primary balance aligns with the design when we created the budget for 2025," said Purbaya in a press conference, Monday (September 22, 2025).