Despite Pursuing Economic Expansion, Purbaya Affirms the 3 Percent Deficit Limit Will Not Be Changed

Finance Minister Purbaya Yudhi Sadewa has affirmed that the government will not change the 3 percent deficit limit, even as it simultaneously targets higher economic expansion. He made this clear when met after the Indonesia Economic Outlook 2026 event held at Wisma Danantara, Jakarta, last Friday, 13 February 2026.

He stressed that the government is also focused on optimizing fiscal policy, maintaining synchronization with monetary policy, and relying on investment to drive growth—yet the 3 percent deficit limit will remain unchanged.

“No, we will not change the deficit limit. I will focus on the 3 percent and optimize the available space to create faster growth,” said Purbaya, as quoted on Sunday, 15 February 2026.

He explained that the government’s strategy has proven successful despite initial doubts. With the deficit remaining below 3 percent, economic growth managed to reach 5.39 percent in the fourth quarter of 2025, which is seen as the breakout point from the stagnation around the 5 percent range.

Going forward, Purbaya is optimistic that economic performance will improve by optimizing the available fiscal space. He explained that synchronization between fiscal and monetary policies continues to be maintained so that both are optimal in driving the economy.

Most importantly, Purbaya said, the government will work to accelerate debottlenecking to improve the investment climate, in order to strengthen growth engines from both the private and public sectors.

Regarding the possibility of pursuing 8 percent growth within the next two to three years, Purbaya said an evaluation of the need for additional fiscal space would be conducted if necessary. However, he believes such additional space will not be needed, as there are indications that major investors will enter in the not-too-distant future.

Purbaya also believes fiscal conditions will remain under control through 2032. Counter-cyclical policies or additional stimulus will be considered only if truly needed to further accelerate growth.

“But for now, there is no intention to breach 3 percent or to request an evaluation of whether the 3 percent limit needs to be changed,” he said.

It is known that the preliminary realization of the 2025 State Budget recorded a deficit of Rp 695.1 trillion, or 2.92 percent of gross domestic product (GDP) as of 31 December 2025. This deficit realization widened from the initial target of 2.53 percent in the 2025 State Budget and the mid-year report projection of 2.78 percent, nearly touching the legally mandated deficit threshold of 3 percent.