Indonesia's fiscal condition well-managed: deputy minister

Jakarta (ANTARA) - Deputy Minister of Finance Juda Agung reassured the public and investors that Indonesia’s fiscal condition remains well-managed, supported by strong revenue growth and disciplined budget management.

Speaking at a press conference at the Parliament Complex on Monday, he stated that key performance indicators through May 2026 reflect a highly resilient State Budget.

"The deficit as of May was 0.7 percent and is expected to remain below 3 percent by the end of the year, so it is still very manageable. Taxes are growing well at 19.1 percent, and spending is also tracking above 30 percent,” Juda explained.

According to the June 2026 edition of the State Budget Performance and Facts (KiTa) report, the state budget recorded a deficit of Rp180.4 trillion (around US$10.13 billion), or 0.70 percent of GDP as of May 2026.

Overall state revenues Rp1,185 trillion (US$66.57 billion), equivalent to 37.6 percent of the State Budget target of Rp3,153.6 trillion (US$177.17 billion)—representing a 19.1 percent year-on-year (yoy) growth.

Total tax revenues reached Rp958.2 trillion (US$53.83 billion). Within this sector, specific tax collection accounted for Rp834.4 trillion (US$46.88 billion)—marking a positive growth of 22.1 percent (yoy).

Meanwhile, customs and excise revenues grew moderately by 0.7 percent to US$123.8 trillion (around US$6.96 billion). Non-tax state revenues totaled Rp226.4 trillion (US$12.72 billion), a 19.9 percent (yoy) expansion.

On the expenditure side, state spending realization as of May 2026 reached Rp1,365.4 trillion (US$76.71 billion), or 35.5 percent of the state budget target of Rp3,842.7 trillion (US$215.88 billion). This represents a 34.4 percent (yoy) increase.

Central government spending experienced a significant surge of 52.6 percent (yoy) to reach Rp1,059.3 trillion (US$59.51 billion).

Ministry and institutional spending reached Rp517.7 trillion (US$29.08 billion), up 58.9 percent (yoy), while non-ministerial spending stood at Rp541.6 trillion (US$30.43 billion), or a 47 percent (yoy) increase.

On the contrary, regional transfers experienced a 4.9 percent (yoy) decline, with a realization of Rp306.1 trillion (US$17.20 billion).

With these financial results, the primary balance recorded a surplus of Rp58.6 trillion (US$3.29 billion)—demonstrating an adequate fiscal capacity to manage state revenue, spending, and debt.

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Translator: Bayu Saputra, Yashinta Difa

Editor: Azis Kurmala

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