Indonesia’s state budget recorded a deficit of Rp 319 trillion at the end of September 2026, reaching 1.24% of the country’s Gross Domestic Product. Deputy Minister of Finance Suahasil Nazara announced the figures during the Investor Daily Summit in Jakarta on Thursday, October 8, 2026, noting that the budget is intentionally structured to run a deficit to drive economic growth and public spending.
State Budget Deficit Reaches Rp 319 Trillion in September 2026
The Rp 319 trillion fiscal gap by the end of September 2026 marks a widening from August, when the deficit sat at 0.9% of GDP or Rp 240.1 trillion, CNN Indonesia reported. However, the current shortfall remains smaller than the 1.56% deficit—equivalent to Rp 371.5 trillion—recorded during the same period in 2025, according to data cited by CNBC Indonesia.
Revenue collection reached Rp 2,341.5 trillion by late September, fulfilling 74.2% of the annual target, finance.detik.com reported. Meanwhile, state expenditures climbed to Rp 2,660.5 trillion, representing 69% of the government’s total spending plan for the year.
The Ministry of Finance maintains that the budget performance remains on track as the fiscal year enters its final quarter. “If revenue has already been collected by 74 percent, it means we are on track,” Suahasil stated at the summit.
Budget Flexibility Buffers Economy Against Global Shocks
Government officials emphasize that the budget must retain enough flexibility to absorb external economic shocks and geopolitical tensions. Speaking at the same event, Suahasil highlighted that unpredictable global shifts—such as commodity price volatility, natural disasters, and international conflicts—require fiscal instruments to act as a buffer for the domestic economy, NTVNews.id reported.
To shield households and businesses from sudden external pressures, the government deploys targeted allocations including energy subsidies and compensation, fertilizer subsidies, and social protection programs. Suahasil noted that while the state budget requires room for adjustment, spending must strictly adhere to proper governance and regulatory frameworks rather than discretionary use.
Spending Accelerations Planned for November and December
Ministry projections indicate that government disbursements will pick up pace over the final two months of the year. Suahasil explained that state spending traditionally accelerates in November and December, which will push total expenditure closer to its annual target.
Alongside the spending deficit, the government posted a primary balance surplus of Rp 125.5 trillion by the end of September. Looking ahead, the Ministry of Finance estimates that the full-year deficit for 2026 will reach Rp 734.3 trillion, or approximately 2.85% of GDP.