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State Revenue Rises 25.4% as Budget Deficit Remains Below 1% of GDP

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Indonesia’s state revenue continued to grow through August 2026, rising faster than government spending, while the budget deficit stood at 0.93% of GDP.

News State Revenue Rises 25.4% as Budget Deficit Remains Below 1% of GDP

State revenue reached IDR 2,055.6 trillion by the end of August, up 25.4% from a year earlier and equivalent to around 65% of the 2026 target. The increase was supported by higher tax collections and non-tax state revenue, with tax revenue rising 24.1% year-on-year to IDR 1,409 trillion.

 

Non-tax state revenue also recorded strong growth, reaching IDR 435.1 trillion, or nearly 95% of its full-year target. Customs and excise revenue, meanwhile, stood at IDR 210.2 trillion.

 

Government spending also accelerated during the period, reaching IDR 2,295.7 trillion, up 17.1% year-on-year. Central government expenditure accounted for most of the spending, while transfers to regional governments reached IDR 504.3 trillion.

 

With expenditure remaining higher than revenue, the state budget recorded a deficit of IDR 240.1 trillion, equivalent to 0.93% of GDP. At the same time, the primary balance remained in surplus at IDR 154 trillion, meaning government revenue excluding new borrowing was still sufficient to cover expenditure before interest payments.

 

Finance Minister Suahasil Nazara said the August budget performance remained within the government’s fiscal framework. The government has set a statutory ceiling of 3% of GDP for the budget deficit.

 

On the financing side, net debt financing reached IDR 506 trillion by the end of August, or around 61% of the amount planned for the year. Most of this came from government securities, while loan financing was negative as repayments exceeded new loan withdrawals.

 

For the full year, the government currently projects state revenue of IDR 3,208.1 trillion and expenditure of IDR 3,942.4 trillion, resulting in an estimated deficit of 2.85% of GDP.

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