Indonesia's State Budget Deficit Hits Rp695 Trillion in 2025, Reaching 2.92% of GDP

The Ministry of Finance (MoF) reported that Indonesia's State Budget (APBN) recorded a deficit of Rp695.1 trillion throughout 2025.

This deficit figure is equivalent to 2.92% of the total Gross Domestic Product (GDP). Indonesia's deficit limit is set at a maximum of 3% of GDP.

The MoF explained that the 2025 deficit figure increased by 36.5% from the same period last year (year-on-year/yoy), which was Rp509.2 trillion or 2.3% of GDP.

The deficit value throughout 2025 also exceeded the APBN target by 112.8%, which was set at Rp616.2 trillion or 2.53% of GDP. From the perspective of the semester report (lapsem) outlook, it was also set at Rp662 trillion or 2.78% of GDP.

Minister of Finance, Purbaya Yudhi Sadewa, stated that this deficit figure remains under control.

"This 2.92% deficit is without eliminating the necessary stimulus for the economy [of the country], so our society can still enjoy economic expansion in 2025," Purbaya said during the APBN KiTa press conference on Thursday (January 8, 2025).

Purbaya is optimistic that in 2026, the economic foundation will improve, and economic growth will strengthen. This will also affect the APBN deficit.

"Ideally, the deficit could be pushed down to a lower level with a greater impact of economic growth on society compared to last year. This year, we assume economic growth of 5.4%," Purbaya said.

This widening deficit occurred because the realization of state expenditure was greater than its revenue.

By the end of December 2025, state revenue amounted to Rp2,756.3 trillion, a decrease of 3.3% (yoy).

Meanwhile, the realization of state expenditure was higher, reaching Rp3,451.4 trillion, an increase of 2.72% (yoy).

Consequently, the primary balance, or total revenue minus state expenditure without accounting for debt interest payments, recorded a deficit of Rp180.7 trillion.