Politics · Indonesia · 3 hrs ago
Indonesia freezes some government spending as deficit forecast rises
Indonesia’s Finance Ministry ordered a freeze on several types of government spending in a directive issued on October 8.
The measures cover official travel and building construction by ministries and government agencies.
By the end of September, revenue was Rp2,341.5 trillion and spending was Rp2,660.5 trillion, leaving a deficit of Rp319 trillion, or 1.24% of GDP.
That deficit was below the full-year budget target, but much spending is still expected in the final quarter.
The government projects the deficit will reach Rp734.3 trillion, or 2.85% of GDP, by year-end, above its budget target of 2.68%.
The directive is an effort to limit spending as the projected shortfall grows.
The year-end deficit is forecast to exceed the budget target.
Indonesia’s Finance Ministry has frozen several categories of government spending, including official travel and building construction.
The directive was issued on October 8, 2026.
By the end of September, the budget deficit stood at Rp319 trillion, or 1.24 percent of gross domestic product.
The government projects the deficit will rise to Rp734.3 trillion, or 2.85 percent of GDP, by year-end.
That projection exceeds the full-year budget target of Rp689.1 trillion, or 2.68 percent of GDP.
- Who
- Indonesia’s Finance Ministry issued the directive.
- What
- The directive freezes several categories of government spending, including official travel and building construction.
- When
- October 8, 2026.
- Where
- Indonesia.
- Why
- Not stated.
This story does not have two clearly opposing sides.
State revenue was Rp2,341.5 trillion and expenditure was Rp2,660.5 trillion, leaving a Rp319-trillion deficit.
Indonesia’s Finance Ministry issued the spending directive.
The government projects the budget deficit will reach Rp734.3 trillion, or 2.85 percent of GDP.
- Directive date
- October 8, 2026
- September deficit
- Rp319 trillion
- September deficit share
- 1.24 percent of GDP
- Full-year budget deficit target
- Rp689.1 trillion, or 2.68 percent of GDP
- Year-end deficit projection
- Rp734.3 trillion, or 2.85 percent of GDP