The 2024 State Budget Deficit Is Estimated To Be 2.8 Percent Of GDP, Indonesia's Debt Has The Potential To Increase

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. Antara)

JAKARTA - The government targets the 2024 State Revenue and Expenditure Budget deficit (APBN) to be in the range of 2.8 percent of Gross Domestic Product (GDP).

For information, the 2025 State Revenue and Expenditure Budget deficit (APBN) is in the range of 2.45 percent to 2.8 percent of GDP.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that in 2024 it is projected that the APBN deficit will widen.

The 2024 APBN deficit will expand to around 2.8 percent of the target set this year in the range of 2.29 percent of GDP. Because there is an addition to fertilizer subsidies of Rp. 14 trillion.

"This year's deficit is planned in the APBN (2024) 2.29 or 2.3, but the outlook is 2.8. Why is that? We just talked about adding a fertilizer subsidy of Rp. 14 trillion," he explained to the media crew, Monday, February 26.

For information, the increase in the number of subsidized fertilizer quotas in 2024 has been added 2 times, from the previous 4.7 million tons to 7.5 tons and finally to 9.55 million tons.

Airlangga conveyed that the widening of the deficit was due to several things, including the addition of fertilizer subsidies of Rp. 14 trillion. The addition of fertilizer subsidies to adjust the real needs of farmers is 7 to 8 million tons per year. This is because the current fertilizer subsidy budget of IDR 26 trillion is only sufficient for 5.7 million tons per year.

"Why is the fertilizer subsidy added because we need fertilizer according to the annual amount. Usually it's around 8-7 million tons. So it's clearly not enough and it's reflected in rice production not only because of fertilizer, but because El Nino has decreased a lot. January-March it's demand and supply delta is short 1 million." said Airlangga.

In addition, Airlangga added that there was also a direct cash assistance (BLT) program to mitigate food risk of IDR 11.3 trillion.

"BLT has increased for fluctuations in the mitigation of basic food prices, the value is already Rp. 11 trillion," said Airlangga.

In addition, according to Airlangga, the widening of the deficit was also due to the government's decision in the plenary cabinet session this morning that electricity and fuel oil or fuel will not increase in prices until June 2024.

"Then it was decided in the plenary cabinet session there was no increase in electricity, no increase in fuel until June (2024). Both subsidies and non-subsidized ones. It will require an additional budget for Pertamina and PLN and that will later be taken from either the remaining SAL (more budget balance) or the widening of the budget deficit in 2024. So that's 2.3 percent-2.8 percent," he concluded.