Jakarta (ANTARA) – Finance Minister Suahasil Nazara reaffirmed that the State Budget (APBN) deficit will be managed in accordance with Law No. 17 of 2003 on State Finance, which sets a ceiling of 3 percent of gross domestic product (GDP).
“As fiscal managers, we at the Ministry of Finance will continue to work within the existing laws. We use 3 percent as the maximum APBN deficit,” Nazara said at a press conference on the State Budget in Jakarta on Friday.
He said the commitment is reflected in the deficit target set in the 2027 Draft State Budget (RAPBN) at 2.40 percent of GDP.
The target was announced by President Prabowo Subianto in his speech on the 2027 State Budget Draft and Financial Note on August 14, 2026.
“We work based on that. That is why I want to ensure the Finance Ministry complies with the law,” he added.
Nazara expressed hope that discussions on the APBN deficit could be conducted constructively, given that financial market dynamics are also influenced by expectations.
“We do not want to create expectations that would later complicate fiscal management itself,” he said.
Meanwhile, the 2026 fiscal year APBN deficit stood at Rp240.1 trillion, or around 0.93 percent of GDP, as of August 31.
State revenue reached Rp2,055.6 trillion, while realized state expenditure stood at Rp2,295.7 trillion.
The primary balance recorded a surplus of Rp154 trillion, reflecting a fiscal position that remained adequate for managing revenue, expenditure, and debt.
Meanwhile, debt financing realization stood at Rp506 trillion as of August. It was mainly sourced from State Securities (SBN), which amounted to Rp527.4 trillion, equivalent to 66 percent of the 2026 APBN target of Rp799.5 trillion.
Meanwhile, financing through loans was recorded at negative Rp21.4 trillion, equivalent to negative 65.5 percent against the 2026 APBN loan financing ceiling of Rp32.7 trillion.
Nazara said the performance remained in line with the APBN framework that had been prepared.
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Translator: Imamatul, Kenzu
Editor: Primayanti
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