State Budget Deficit Unchanged Unless Crisis Emerges, Purbaya Reveals Key Indicators

Jakarta — Finance Minister Purbaya Yudhi Sadewa has disclosed that President Prabowo Subianto has established specific indicators that would permit him and other economic ministers to increase the state budget deficit above the maximum 3% of gross domestic product (GDP) threshold mandated by state finance legislation.

Purbaya stated that the president has confirmed that the 3% GDP budget deficit could exceed the maximum limit set in the State Finance Law if the country faces a crisis situation.

“In normal circumstances, no, but in a crisis situation, yes,” Purbaya said after attending a limited coordination meeting at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Monday, 16 March 2026.

The principal crisis indicator that would prompt Purbaya and fellow ministers to authorise a budget deficit exceeding 3% is global economic recession. Recession denotes consecutive contractions in economic growth rates.

“For me, a crisis indicator is when the economy is already in recession, and there is global recession as well, with no other way to improve the economy. Or all methods to improve the economy cannot reverse the direction of economic growth except through additional stimulus to the economy,” Purbaya explained.

Accordingly, he stressed that for now the government still considers the state budget deficit as not requiring adjustment of its maximum limit, making an emergency decree unnecessary.

“Because the budget is still secure. If oil prices remain high for an extended period, then we will recalculate the budget situation, but not immediately through an emergency decree,” he added.