Purbaya: No Knowledge Yet of Plans to Raise APBN Deficit Ceiling

Finance Minister Purbaya Yudhi Sadewa commented on reports that the government is discussing options to raise the ceiling on the State Revenue and Expenditure Budget (APBN) deficit above 3 per cent of Gross Domestic Product (GDP). He claimed to be unaware of any such plan.

“I am not yet aware of it; it is still being considered,” Purbaya told journalists at the Finance Ministry on Friday, 13 March 2026. Nevertheless, he stated that the ministry continuously calculates the impact of rising global oil prices on the APBN, and should a decision be necessary, the ministry will assess its implications for the economy. Purbaya also affirmed that the ministry remains committed to maintaining a prudent fiscal policy.

According to the state treasurer, Indonesia’s APBN deficit ceiling remains lower than that of other regional countries. He noted that only a few nations have managed to maintain deficits below 3 per cent. Purbaya cited several countries whose deficits have exceeded 3 per cent, including Vietnam and India.

However, Purbaya acknowledged he would implement any directive from President Prabowo Subianto and Parliament regarding deficit expansion. “If it’s an order, we will implement it. I am merely the president’s instrument,” he said.

According to Finance Ministry records, the APBN deficit reached 135.7 trillion rupiah at the end of February, surging 324.4 per cent compared to the corresponding period in the previous year. This figure equated to 0.53 per cent of GDP.

Meanwhile, Said Abdullah, Chair of Parliament’s Budget Committee, emphasised that the APBN deficit would be maintained below the 3 per cent threshold of GDP. “As Chair of the Budget Committee, we comply with the APBN Law and the State Finance Law. Our deficit ceiling is 3 per cent of GDP and I have never considered exceeding that limit,” Said stated at Parliament’s complex on Thursday, 12 March 2026.