Indonesia's State Budget Records First Deficit of the Year in October 2022

The Ministry of Finance (Kemenkeu) reported that Indonesia's State Budget (APBN) performance in October 2022 resulted in a deficit of Rp169.5 trillion. This figure is equivalent to 0.91% of the Gross Domestic Product (GDP).

This is the first time Indonesia's APBN has experienced a deficit this year, following consecutive surpluses from January to September 2022.

Nevertheless, Finance Minister Sri Mulyani Indrawati stated that the realized deficit is significantly lower than the target set in the 2022 APBN.

"Compared to Presidential Regulation 98, which is the basis of our APBN, the total deficit is actually Rp840 trillion or 4.5% of GDP. So, until October, the deficit of Rp169.5 trillion is still far lower than Presidential Regulation 98," said Sri Mulyani in a press conference on the APBN, Thursday (24/11/2022).

This budget deficit occurred because state revenue realization was lower than state expenditure. In October 2022, state revenue grew by 44.5% (year-on-year/yoy) to Rp2,181.6 trillion, smaller than state expenditure which grew by 14.2% (yoy) to Rp2,351.1 trillion.

In more detail, state revenue from tax receipts reached Rp1,448.2 trillion or grew by 51.8% (yoy), customs and excise duties Rp256.3 trillion or grew by 24.6% (yoy), and Non-Tax State Revenue (PNBP) reached Rp476.5 trillion or grew by 36.4% (yoy).

Meanwhile, state expenditure consisted of central government expenditure of Rp1,671.9 trillion or grew by 18% (yoy), ministry/agency expenditure of Rp754.1 trillion or contracted by 9.5% (yoy), non-ministry/agency expenditure of Rp917.7 trillion or grew by 57.4% (yoy), and transfers to regions (TKD) of Rp679.2 trillion or grew by 5.7% (yoy).

The primary balance as of October 2022 was recorded at Rp146.4 trillion, down 154.95% (yoy). Budget financing realization was Rp439.9 trillion, down 27.7% (yoy), and there was an excess of budget financing (SiLPA) reaching Rp270.4 trillion.