Indonesia’s $20 Billion Budget Deficit Set to Widen Further
- Deficit for full-year 2019 ultimately may reach 2.2% of GDP
- Indonesia set to issue more bonds to make up revenue shortfall
Photographer: Bay Ismoyo/AFP via Getty Images
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Indonesia’s budget deficit has ballooned to more than $20 billion and is set to widen further as Southeast Asia’s largest economy struggles amid a global slowdown.
With the government on pace to miss revenue targets, the 2019 budget deficit is now expected to reach as much as 2.2% of gross domestic product, from an initial target of 1.84%. Figures released Monday showed the deficit had already climbed to 289.1 trillion rupiah ($20.5 billion), or 1.8% of GDP, as of the end of October.
“This is quite a big increase in the deficit.,” Finance Minister Sri Mulyani Indrawati told reporters Monday, warning of “significant pressure” on Indonesia’s industrial sector.