Budget Deficit Above 3 Per Cent Discussed, Said Abdullah: Government Has Not Yet Briefed Parliament

Public discourse regarding the expansion of Indonesia’s national budget deficit above three per cent of gross domestic product has intensified in recent weeks.

In response to this issue, Said Abdullah, Chair of the Budget Committee of the Indonesian House of Representatives, stated that the government has not yet submitted initial discussions regarding this policy proposal to Parliament.

“To my knowledge, there has been no initial discussion presented by the government, specifically from the Finance Minister, at the Budget Committee regarding a deficit expansion beyond three per cent of GDP,” he said in a written statement received by Kompas.com on Friday, 13 March 2026.

The discussion emerged following statements from Finance Minister Purbaya Yudhi Sadewa concerning the national economy’s challenges, including global geopolitical dynamics.

According to Said, the government still possesses fiscal space to maintain the deficit below three per cent of GDP through optimisation of state revenues and spending efficiency.

Regarding revenue, Said believes the government can strengthen state receipts through tax system improvements, including implementation of a “coretax system” to improve tax collection effectiveness.

Additionally, rising export commodity prices, such as crude oil and coal, also have the potential to increase non-tax state revenues.

“If spending can be controlled and balanced with revenue realisation, the target of maintaining a deficit below 3 per cent, God willing, can be achieved,” he stated.

Said also urged the government to manage state financing carefully, particularly amid pressure on global credit ratings.

According to him, the Finance Ministry needs to reassure foreign investors to maintain their interest in purchasing State Securities, whilst simultaneously expanding State Securities outreach to the domestic retail sector.

Besides the deficit expansion option, public discussion has also touched upon the possibility of implementing Quantitative Easing (QE) policies and even money printing scenarios as instruments to maintain national economic resilience.

Said emphasised that QE policy, particularly if conducted through State Securities purchases in the secondary market by Bank Indonesia, must carefully consider monetary capacity and stability.