2025 State Budget Deficit Nearly 3 Percent, Purbaya: It Can Be Zero but the Economy is Morat-marit

JAKARTA - Finance Minister Purbaya Yudhi Sadewa reported that the 2025 State Budget (APBN) deficit reached IDR 695.1 trillion or equivalent to 2.92 percent of Gross Domestic Product (GDP), this figure is larger than the initial target of 2.53 percent of GDP and close to the fiscal deficit threshold of 3 percent.

Purbaya explained that the widening of the deficit is part of a fiscal policy strategy that is countercyclical to maintain the momentum of economic growth amid global pressures.

According to him, the government can actually reduce the deficit to zero percent by cutting spending, but this step risks worsening the economic condition.

"The deficit rose to 2.92 percent from the initial plan of 2.53 percent, this with the mission to keep the economy still able to expand in the midst of high global pressures. In fact, if I want to make a zero deficit, I can also cut the budget, but the economy is morat-marit," he said in a press conference APBN Kita, Thursday, January 8.

However, Purbaya emphasized that the government remained committed to maintaining a safe deficit in accordance with the State Budget Law, namely below 3 percent of GDP.

He said fiscal management was carried out carefully so that the economy continued to grow without sacrificing budget discipline.

"So this is the expertise of friends in the Ministry of Finance to ensure that the economy can continue to grow without sacrificing the prudence of the fiscal side. Even though the bubble (deficit), we make sure it is below 3 percent, this is the strictest standard," he said.

For information, the state budget deficit reflects a condition where the realization of state expenditures is greater than the revenue.

Meanwhile, throughout 2025, state revenues were recorded at Rp. 2,756.3 trillion or 91.7 percent of the state budget target, while state spending reached Rp. 3,451.4 trillion or equivalent to 95.3 percent of the budget ceiling.

The state's revenue comes from tax revenue of IDR 1,917.6 trillion, customs and excise taxes of IDR 300.3 trillion, non-tax state revenues (PNBP) of IDR 534.1 trillion, and grants of IDR 4.3 trillion.

Meanwhile, in terms of state spending of Rp3,451.4 trillion consists of central government spending of Rp2,602.3 trillion and transfers to regions of Rp849 trillion.

Purbaya added that the decision not to cut spending aggressively was made because of the role of the state budget as an economic buffer.

"Why not cut the budget so that the deficit remains small? We know that when our economy is experiencing a downward trend, we must provide stimulus to the economy. This is a manifestation of the government's commitment to becoming an economy that continues to grow and continue, without endangering the state budget," he said.