{
    "success": true,
    "data": {
        "id": 1615390,
        "msgid": "jk-warns-of-risks-if-government-increases-budget-deficit-above-3-per-cent-1773586275",
        "date": "2026-03-15 20:55:44",
        "title": "JK Warns of Risks if Government Increases Budget Deficit Above 3 Per Cent",
        "author": "Danu Damarjati",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Finance",
        "summary": "Former Vice President Jusuf Kalla has warned of the risks of expanding Indonesia's budget deficit beyond 3 per cent, stating that larger deficits would increase debt servicing burdens and potentially raise the debt-to-budget ratio to dangerous levels above 40 per cent. Kalla stressed that any increase in the deficit would require legislative changes and would constrain resources available for regional infrastructure and social services, whilst noting that some scenarios predict the 2026 budget deficit could reach 3.18 to 4.06 per cent if crude oil prices rise and the rupiah weakens.",
        "content": "<p>Jakarta \u2014 Former Vice President Jusuf Kalla (JK) has warned of the\nrisks if the government seeks to expand the budget deficit of the State\nBudget (APBN) beyond 3 per cent.<\/p>\n<p>Jusuf Kalla stated that increasing the APBN deficit would affect the\nburden of debt repayment and interest payments by the government.<\/p>\n<p>\u201cBut the larger the deficit, the greater the risk that debt servicing\nand interest payments will increase. So the ratio of debt to the budget\nwill become larger,\u201d Jusuf Kalla said at his residence on Jalan\nKebayoran Baru, South Jakarta, on Sunday (15 March 2026).<\/p>\n<p>\u201cAnd if debt grows larger, it could reach a maximum of 40 per cent,\ncould reach 50 per cent, and that would be very dangerous for\ncontinuity,\u201d he added.<\/p>\n<p>\u201cAs the deficit grows larger, the capacity for development becomes\nsmaller. This needs to be corrected,\u201d he said.<\/p>\n<p>Kalla stated that the proposal to expand the deficit beyond 3 per\ncent could only be implemented if the government revised the law\ngoverning the deficit limit.<\/p>\n<p>\u201cIt is certainly possible if we change the law. So the first thing\nwould be to change the law,\u201d he said.<\/p>\n<p>He reminded that local governments have responsibilities in various\nsectors such as education and health.<\/p>\n<p>\u201cToday the current budget allocation to regions is just 17 per cent.\nSo regional infrastructure could be at risk, there will be a decline in\nits quality, and also in education. This is what the government must pay\nattention to, that regions are the building blocks of the nation,\u201d he\nsaid.<\/p>\n<p>In a Full Cabinet Session at the State Palace, the Coordinating\nMinister for Economic Affairs Airlangga Hartarto presented several\nscenarios if crude oil prices continue to rise and the rupiah weakens\nfurther.<\/p>\n<p>Some of these scenarios predict the APBN deficit to be at 3.18 per\ncent to 4.06 per cent.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/jk-warns-of-risks-if-government-increases-budget-deficit-above-3-per-cent-1773586275",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}