Indonesia's Budget Deficit Hits Rp240.1 Trillion by August 2026 - Tempo.co English

TEMPO.CO, Jakarta - Indonesia's state budget recorded a deficit of Rp240.1 trillion (about US$14.2 billion) as of August 31, 2026, equivalent to 0.93 percent of gross domestic product (GDP), Finance Minister Suahasil Nazara said Friday, September 18.

Suahasil said the budget remained on track, with the primary balance still in surplus and the deficit within the government's target.

“By the end of August, the state budget's performance remained strong, with a positive primary balance and a deficit within a controlled range,” Suahasil said at the Finance Ministry's September edition of the APBN KiTa briefing in Jakarta.

State revenue reached Rp2,055.6 trillion, or 65.2 percent of the Rp3,153.6 trillion target set in the 2026 state budget. The figure was up 25.4 percent year-on-year from Rp1,639 trillion recorded in the same period last year.

Tax revenue accounted for Rp1,619.3 trillion, or 60.1 percent of the annual target, representing 21.7 percent year-on-year growth.

Of the total, tax receipts reached Rp1,409 trillion, or 59.8 percent of the target, up 24.1 percent from a year earlier. Customs and excise revenue stood at Rp210.2 trillion, or 62.6 percent of the target, growing 7.8 percent year-on-year.

Non-tax state revenue, meanwhile, reached Rp435.1 trillion, equivalent to 94.8 percent of the annual target and up 41.7 percent year-on-year.

State spending reached Rp2,295.7 trillion, or 59.7 percent of the Rp3,842.7 trillion budget allocation. Spending grew 17.1 percent year-on-year from Rp1,960.3 trillion in the same period last year.

Central government spending reached Rp1,791.5 trillion, or 56.9 percent of its allocation, representing 29 percent year-on-year growth.

Spending by ministries and government agencies reached Rp912.4 trillion, or 60.4 percent of the allocation, up 33 percent from a year earlier. Non-ministerial and non-agency spending stood at Rp879.1 trillion, or 53.6 percent of the allocation, up 25.1 percent year-on-year.

Meanwhile, transfers to regional governments totaled Rp504.3 trillion, or 72.8 percent of the allocation. Unlike other major spending components, regional transfers fell 11.8 percent year-on-year.

The primary balance recorded a surplus of Rp154 trillion as of August.

The primary balance measures the difference between government revenue and spending before interest payments on government debt.

Suahasil said the surplus showed that fiscal conditions remained adequate to manage government revenue, spending and debt.