Surging Spending Yet Deficit Under 3%, Purbaya: That's Prabowo's Expertise

Finance Minister Purbaya Yudhi Sadewa has confirmed that the state budget deficit will remain consistently below 3% of GDP, in accordance with the safe limit stipulated in the State Finance Law. He emphasised that the government has proven capable of controlling the deficit even as Indonesia’s economic growth surges rapidly to 5.61% year-on-year in the first quarter of 2026, marking the highest level since the third quarter of 2022. Throughout the first quarter of 2026, the state budget recorded a deficit of 0.93% against GDP, amounting to Rp 240.1 trillion. This equates to 34.8% of the 2026 state budget target of Rp 689.1 trillion, or 2.68% of GDP. “With that alone, we can grow faster. That’s Mr Prabowo’s expertise,” said Purbaya in the Kebon Sirih area, Jakarta, on Wednesday (6/5/2026). Purbaya stressed that the deficit generated so far has also proven effective in driving growth amid global economic pressures stemming from conflicts in the Middle East. However, without supplementary budget financing from debt, the primary balance as of the end of March 2026 had already exceeded the 2026 state budget target, recording a deficit of 95.8%, equivalent to 106.8% above the Rp 89.7 trillion target. “This is because spending has been accelerated upfront, naturally increasing the deficit. But as time progresses, income will also rise, and the deficit will be kept below 3%. Last year alone, it was only 2.8%, not 2.9%,” Purbaya asserted firmly.