Indonesia's state budget deficit reaches Rp180.4 trillion, but government claims fiscal stability

Indonesia's state budget (APBN) registered a deficit of Rp180.4 trillion by the end of May 2026, equivalent to 0.70 percent of the country's Gross Domestic Product (GDP). The Ministry of Finance reported these figures during the APBN KiTa (State Budget) press conference held in Jakarta on Friday, June 5, 2026.

Despite the significant shortfall, attributed to aggressive spending increases, the government maintains that the nation's fiscal condition is secure. This confidence is bolstered by strong growth in tax revenues, which have helped to offset the increased expenditures. Minister of Finance Purbaya Yudhi Sadewa addressed the press, providing details on the budget's performance.

The data indicates that while government spending has risen sharply, the robust collection of taxes has provided a crucial buffer, ensuring the overall fiscal health of the country remains stable. The government's assertion suggests a proactive approach to managing public finances, balancing necessary spending with effective revenue generation.