Indonesia Raises Budget Deficit Outlook Near 3% Legal Limit

Indonesia expects to post a much bigger budget deficit this year due to weak revenue collections and the acceleration of President Prabowo Subianto’s priority programs.

The shortfall is estimated at 2.78% of gross domestic product, higher than the 2.5% initially targeted in the 2025 budget, Finance Minister Sri Mulyani Indrawati said in a mid-year fiscal update to parliament on Tuesday.