Finance Minister Sri Mulyani Indrawati reported that the projected budget deficit for Indonesia's 2025 State Budget (APBN) is expected to increase to 2.78% of the gross domestic product (GDP). This figure exceeds the initial target of 2.53%.

She delivered this update directly to President Prabowo Subianto during a meeting at the Presidential Palace in Jakarta on Tuesday evening (July 23, 2025).

“I also briefed the President on the ongoing discussions in the House of Representatives (DPR) regarding the 2025 APBN, particularly following the submission of the mid-year report. We conveyed that the 2025 outlook anticipates a deficit of 2.78% of GDP, which results from both revenue and expenditure factors,” Sri Mulyani explained.

In addition to the deficit outlook, she informed the President that discussions between the DPR and the government have also covered progress made on several of the government’s key programs.

Earlier, in early July 2025, Sri Mulyani had already projected that the fiscal deficit might widen, though still remaining within the legal limit of 3% as mandated by the State Finance Law. As of the first half of 2025, the realized deficit was 0.81% of GDP. Should this projection hold, the 2025 fiscal deficit would be deeper than previously anticipated.

“We are designing the APBN to fund priority programs. The 2025 APBN is structured to support key initiatives aimed at improving the welfare of the Indonesian people,” emphasized the Minister of Finance during a working meeting with the House Budget Committee.

She added that total state revenue by the end of 2025 is projected to reach Rp 2,865.5 trillion, representing 95.4% of the 2025 APBN target. Meanwhile, total state expenditure is expected to hit Rp 3,527.5 trillion, equivalent to 97.4% of the targeted figure.

“The 2025 APBN is extraordinarily dynamic in its execution due to the addition of new ministries and agencies, which altered the spending structure. This poses a challenge for us to maintain fiscal sustainability,” Sri Mulyani asserted.