Many countries in the world experienced deficits due to COVID-19, but not many countries have succeeded in reducing their deficits again. Indonesia is one of the few countries that have been able to reduce their fiscal deficits.
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati said here on Tuesday that Indonesia's state budget deficit management is better compared to other countries.

"Many countries in the world experienced deficits due to COVID-19, but not many countries have succeeded in reducing their deficits again. Indonesia is one of the few countries that have been able to reduce their fiscal deficits," she expounded.

She made the statement during a working meeting with Committee IV of the Regional Representative Council (DPD).

Indrawati pointed out that India's deficit spiked from 7.7 percent of the gross domestic product (GDP) to 12.9 percent due to the pandemic. Similarly, in the United States (US), the deficit rose from 5.8 percent to 13.9 percent.

Meanwhile, in Indonesia, the state budget deficit widened from 2.2 percent in 2019 to 6.1 percent in 2020.

However, within three years after the pandemic, Indonesia succeeded in narrowing the deficit. As of 2023, Indonesia's deficit stood at 1.6 percent.

This achievement is different compared to other countries, such as India, which recorded a deficit of 8.6 percent, and the US, which experienced a deficit of 8.8 percent in 2023.

"We were able to reduce the deficit very quickly with a relatively very small deficit, while other countries are still struggling with deficit levels," Indrawati noted.

The Indonesian government also managed to keep the debt ratio at a relatively low level, namely in the range of 39 percent to 40 percent from 2020 to 2023, the minister stated.

In comparison, the debt-to-GDP ratio of other countries is at a relatively high level, such as India, where it is at 81–88 percent, and the US, where it has surpassed 100 percent.

"We are trying to maintain the debt ratio at a low level," she said.

In 2025, the Ministry of Finance is targeting to keep the deficit in the range of 2.45 percent to 2.82 percent.

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Translator: Imamatul Silfia, Raka Adji
Editor: Azis Kurmala
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