Government May Review Deficit Ceiling When Economy Grows Rapidly

JAKARTA, October 14, 2025 – Finance Minister Purbaya Yudhi Sadewa said the government has no plan to raise the budget deficit above 3 % of GDP. The comment was made on Tuesday, 14 Oct 2025.

Purbaya added that any increase in the deficit would only be considered if the national economy grows rapidly enough to support fiscal expansion. Currently the government is focusing on cash management by transferring state funds of Rp200 trillion from Bank Indonesia to state‑owned banks, and views a short‑term deficit rise as reckless. He also criticized the 3 % GDP deficit ceiling and the 60 % debt‑to‑GDP ratio, adopted from the Maastricht Treaty, as arbitrary limits.

By reaffirming the 3 % GDP cap, the government emphasizes fiscal stability while awaiting strong economic growth. The emphasis on liquidity management shows a priority on cash balance before expanding the deficit. This approach may keep public debt from surging in the near term.