Antara News·Indonesia·Tuesday, October 13, 2026 at 02:08 PM UTC

Indonesia vows to keep budget deficit below 3 percent of GDP

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Imamatul Silfia, Yashinta Difa

..we wish to safeguard our credibility and reaffirm our commitment to the 3 percent budget deficit target and the debt-to-GDP ratio limit of 60 percent,

Jakarta (ANTARA) - Indonesia has reaffirmed its commitment to fiscal discipline, pledging to keep the state budget deficit below 3 percent of gross domestic product (GDP) and maintain the debt-to-GDP ratio below 60 percent.

Speaking at a bilateral meeting with World Bank Group President Ajay Banga in Bangkok, Finance Minister Suahasil Nazara emphasized that fiscal credibility remains the foundation of Indonesia's economic strategy.

"Our only currency is credibility. Therefore, we wish to safeguard our credibility and reaffirm our commitment to the 3 percent budget deficit target and the debt-to-GDP ratio limit of 60 percent," Suahasil said in a statement released on Tuesday.

He highlighted that Indonesia's fiscal policy is designed to directly support the strategic priorities of President Prabowo Subianto's administration.

These priorities include food and energy security, human resource development in health and education, support for small and medium-sized enterprises (SMEs), and the downstreaming of natural resources.

To achieve these development goals, Suahasil underscored the need to deepen the domestic financial sector and create high-value employment opportunities.

He called for an integrated strategy to ensure that financial deepening and inclusion advance in tandem with macroeconomic stability.

According to the Finance Ministry, the World Bank Group welcomed Indonesia's fiscal framework and expressed its readiness to provide technical assistance.

The support will focus on expanding the domestic capital market and increasing domestic value addition through Indonesia's natural resource downstreaming programs.

During the meeting, held on the sidelines of discussions between ASEAN finance officials and World Bank Group leaders, Suahasil also noted that Southeast Asia continues to stand out as a "bright spot" for global economic growth.

Against this backdrop, he said Indonesia's state budget serves as a reliable instrument for promoting economic growth while safeguarding public welfare through credible fiscal management.

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