Indonesia Fiscal Deficit Soars to 2.9% of GDP, Near Legal Limit

Indonesia’s fiscal deficit hit the highest level in at least two decades, outside of the pandemic, approaching the legal cap of 3% of gross domestic product in President Prabowo Subianto’s first full year in power.

The budget shortfall stood at 695.1 trillion rupiah ($41.4 billion) or 2.92% of GDP in 2025, Finance Minister Purbaya Yudhi Sadewa said in a briefing on the unaudited figures. That exceeded both the original target of 2.53% and a revised goal of 2.78%. Bloomberg data going back to 2005 show the deficit ratio was the highest on record outside the pandemic years of 2020 and 2021.