..what matters most is that the economy continues to move, corporate profits improve, and this will automatically be reflected in higher stock prices,Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has assured that a potential widening of the state budget deficit will not disrupt the movement and performance of Indonesia’s economy.
He said the government remains committed to keeping the deficit within the legal limits.
“The deficit may move slightly higher. But what is certain is that we will ensure it does not violate the law,” Purbaya said in a doorstep interview after the Opening Ceremony of the 2026 Indonesia Stock Exchange trading year here on Friday.
Purbaya explained that the 2025 state budget deficit is projected to increase from the previous outlook of 2.78 percent of gross domestic product, as outlined in the last semester report.
The adjustment was influenced by the economic slowdown that occurred throughout last year. Despite this, he emphasized that the government has taken various measures to restore economic performance.
As economic conditions improve, he expressed confidence that the development of the budget deficit will become more manageable going forward.
“And what matters most is that the economy continues to move, corporate profits improve, and this will automatically be reflected in higher stock prices,” he said.
As noted, the 2025 state budget deficit target was revised from an initial 2.53 percent of GDP to 2.78 percent of GDP. The revision took into account slower-than-expected state revenue collection.
According to the latest data released by the Ministry of Finance, as of Nov. 30, 2025, the budget deficit stood at 2.35 percent of GDP, equivalent to Rp560.3 trillion.
State revenue reached Rp2,351.5 trillion, or 82.1 percent of the 2025 budget outlook of Rp2,865.5 trillion. Meanwhile, state spending was recorded at Rp2,911.8 trillion, or 82.5 percent of the projected Rp3,527.5 trillion.
Although state revenue is projected to fall short of the target, Purbaya reiterated the government’s commitment to keeping the budget deficit below the statutory ceiling of 3 percent of GDP, as mandated by law.
Related news: Indonesia’s Q3 growth shows effective fiscal management: minister
Related news: RI President pushes fiscal reform, State Budget deficit control
Translator: Imamatul Silfia, Primayanti
Editor: M Razi Rahman
Copyright © ANTARA 2026
