On Possibility of Budget Deficit Exceeding 3 Per Cent, Purbaya: I Don't Yet Know

Jakarta — Finance Minister Purbaya Yudhi Sadewa addressed reports that the government is considering raising the ceiling for the State Budget deficit above 3 per cent.

Purbaya stated he had not yet received confirmed information about such discussions. According to him, the government is currently calculating various fiscal risks, including the impact of rising global oil prices on the state budget.

“I don’t yet know. You heard it from your boss, did you? I don’t know yet; it’s still being considered perhaps. But we always calculate the impact of rising global oil prices on our budget. So when a decision needs to be made, we first calculate the impact,” said Purbaya when met at the Finance Ministry on Friday (13 March 2026).

According to Purbaya, when viewed globally, Indonesia’s 3 per cent deficit ceiling has actually been relatively lower compared to many other countries. He cited examples of countries such as Vietnam, which has a deficit of around 4 per cent, whilst India reaches 5 to 6 per cent. Meanwhile, several developed nations in Europe, the United States, South Korea, and Japan also have higher deficit rates.

Nevertheless, the former chairman of the Deposit Insurance Agency emphasised that the government would continue to implement fiscal policy carefully in managing the state budget. “So based on those figures alone there should be no problem. It’s just that others see different matters than we do, which we are currently studying. But what is clear is that for now we will implement fiscal policy carefully,” he said.

However, Purbaya did not rule out the possibility that the budget deficit could widen above 3 per cent if directed by President Prabowo Subianto. “I don’t know (whether the president will widen the deficit). I am merely the president’s instrument. If it’s an order, we will implement it,” he concluded.