Finance ministry says state budget deficit is planned, not a loss

Jakarta (ANTARA) - Finance Minister Suahasil Nazara stressed that a deficit in the State Budget (APBN) does not mean the state is suffering a loss, as it is designed to finance public spending.

“The APBN is spending for the public, for all the people, so the APBN is indeed designed to run a deficit, not designed to be in the red in the sense of a loss,” Nazara said at the APBN KiTa press conference in Jakarta on Friday.

He urged the media to use precise terminology when reporting on fiscal conditions, noting that a deficit occurs by design when state spending exceeds state revenue.

As of late October 2026, the state budget deficit stood at 1.47 percent of gross domestic product (GDP).

“And this is also on track toward a deficit of 2.85 percent of GDP,” Nazara said.

The Finance Ministry reported that state revenue as of Oct. 31, 2026, reached Rp2,618 trillion (US$143.7 billion), or 83 percent of the full-year target, growing 23.9 percent compared with the same period last year.

The revenue includes tax receipts of Rp1,796.8 trillion (US$98.63 billion), or 76.2 percent of the target, and customs and excise duties of Rp267.2 trillion (US$14.67 billion), or 79.5 percent of the target.

Meanwhile, non-tax state revenue (PNBP) exceeded its target at Rp551.8 trillion (US$30.29 billion), driven by revenue from forest area enforcement and Bank Indonesia’s surplus.

To meet the year-end target, the government still needs to collect Rp590.1 trillion (US$32.39 billion) in November and December, including Rp514 trillion (US$28.21 billion) in tax revenue, Nazara said.

On the expenditure side, state spending reached Rp2,997.2 trillion (US$164.52 billion), or 78 percent of the ceiling, up 15.6 percent year-on-year, comprising ministry and agency spending of Rp1,239.1 trillion (US$68.02 billion), non-ministry spending of Rp1,104.5 trillion (US$60.63 billion), and regional transfers of Rp653.6 trillion (US$35.88 billion).

Nazara said the execution of state revenue and spending through October remains aligned with the APBN plan.

He projected that spending absorption will accelerate in November and December as ministry and agency contracts conclude and payments are disbursed for ongoing projects.

He added that the budget’s primary balance remained positive through October, though it is expected to shift as execution continues through year-end.

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Translator: Fauzul Azhim Bin Fakhrurazi
Editor: Arie Novarina
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