State Budget Deficit of IDR 204.2 Trillion in the First Semester of 2025

Jakarta – The Ministry of Finance reported that until June or the first semester of 2025 the state budget had a deficit of 0.84 percent of gross domestic product (GDP) or the equivalent of IDR 204.2 trillion.

Finance Minister Sri Mulyani Indrawati admitted that the state budget deficit until the first semester of 2025 was widened when compared to the same period last year which reached 0.34 percent of GDP or Rp77.3 trillion.

The state treasurer explained that the widening deficit was caused by tax revenues in January and February 2025 experiencing a deep contraction.

“We are still maintaining the deficit for 2025 in the first semester, reaching Rp204.2 trillion, which is wider than last year. But we hope that in the second semester it will recover,” Sri Mulyani said when submitting an interim report on the realization of the State Budget for the first semester of 2025 at the House of Representatives, Tuesday, July 1, 2025.

The Ministry of Finance also noted that the primary balance recorded a surplus of Rp 52.8 trillion until the first semester of 2025.

Based on its presentation, the realization of state revenue until the first semester of 2025 reached Rp1,201.8 trillion or 40 percent of the target.

The realization was recorded 9 percent lower year on year (yoy) when compared to the same period last year which amounted to Rp1,320.7 trillion.

Furthermore, the realization of state spending reached Rp1,406 trillion, or 38.8 percent of the target. The realization of expenditure was recorded to have increased compared to the same period last year by 0.6 percent yoy which reached Rp 1,398 trillion.

Meanwhile, state revenue contracted by 9 percent yoy due to the downward trend in the price of the Indonesian Crude Price (ICP), the transfer of BUMN dividends to BPI Danantara, and the limited VAT policy on luxury goods.

Meanwhile, state spending grew by 0.6 percent yoy. This is in line with the achievement of development targets in the fields of education and health, encouraging the economy in the regions (MBG, village / SME empowerment), priority programs such as food and energy security, universal defense, investment / licensing. (*)