Government Keeps 2025 Deficit in Check Despite New Economic Package, Finance Minister Purbaya Says
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JAKARTA, Investortrust.id — Finance Minister Purbaya Yudhi Sadewa says Indonesia’s 2025 budget deficit remains manageable even as the government introduces financing for eight new economic stimulus programs announced on Monday, Sept. 15, 2025, at the Presidential Palace.
“We already have the money allocated. This does not mean the deficit will widen,” Purbaya said after the announcement in Jakarta.
One of the largest allocations is a Rp 7 trillion, equal to about $450 million, food aid program for 18.3 million beneficiary families scheduled for October and November. The budget assumes a rice price of Rp 18,500 per kilogram, including distribution costs.
Purbaya stressed that the programs were designed based on a careful calculation of the 2025 state budget, taking into account the remaining funds from 2024. “I can calculate exactly how much is left. Rather than leaving it unused, I am channeling it into this package,” he said.
The finance minister added that the economic package is part of an effort to optimize budget absorption to support growth. “Without changing the deficit significantly. If the economy grows faster and the tax ratio remains constant, tax revenues will also increase more rapidly. The impact on the deficit will be neutral or even positive,” he said.
Indonesia’s 2025 deficit outlook is set at 2.78 percent of GDP, up slightly from the initial target of 2.53 percent.
The minister also reaffirmed that the government’s debt ratio will stay around 40 percent of GDP. “There will be no increase in the debt portion,” he told reporters at the House of Representatives on Sept. 11, 2025.
He dismissed speculation of raising the debt ratio beyond 40 percent, saying the government will maintain fiscal prudence. “My focus now is to ensure the budget has an optimal impact on the economy in 2025 and 2026,” he said.
The former chairman of the Indonesia Deposit Insurance Corporation emphasized timely budget execution while ensuring disbursements do not disrupt the financial system. “That is the priority. Once we optimize what we have, then we can consider additional resources for the economy,” he explained.
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