Indonesia's 2023 revenue and expenditure budget recorded deficit of 1.65

The Minister of Finance of Indonesia Sri Mulyani.

JAKARTA — Minister of Finance Sri Mulyani said that Indonesia's 2023 State Revenue and Expenditure Budget (APBN) recorded quite good performance. The 2023 APBN deficit was successfully reduced below the assumptions set by the government.

Sri Mulyani detailed that the 2023 APBN recorded a deficit of IDR 347.6 trillion or 1.65 percent of gross domestic product and decreased by 24.5 percent from the same period last year. The realization of the 2023 APBN deficit is lower than the target of IDR 598.2 trillion.

The actual APBN deficit is also lower than the target in the initial APBN of IDR 598.2 trillion and Presidential Decree 75/2023 of IDR 479.9 trillion. "The deficit was previously 2.84 percent of GDP, then revised through Presidential Decree 75/2023 to 2.27 percent, it turns out the realization was 1.65 percent of GDP," said Sri Mulyani.

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The 2023 APBN achievement is much better than at the start of the Covid-19 pandemic in 2020. At that time, Indonesia experienced a deficit of up to IDR 947.7 trillion or 6.14 percent of GDP.

Then, in 2021, the APBN deficit will reach IDR 775.1 trillion or 4.57 percent of GDP and in 2022 it will amount to IDR 460.4 trillion or 2.35 percent of GDP.

The achievement in 2023 is a good story with the primary balance surplus of IDR 92.2 trillion. "Imagine that at the beginning we set a deficit of IDR 156.8 trillion, then we revised it to IDR 38.5 trillion but ended up with a surplus," said the finance minister.

State revenue performance in 2023 also looks very strong with a realization of IDR 2,774.3 trillion or 105.2 percent of the target of Presidential Decree 75/2023 of IDR 2,637.2 trillion. Tax revenues reached IDR 1,869.2 trillion or 108.8 percent of the target in Presidential Decree 75/2023 of IDR 1,818.2 trillion or grew 8.9 percent (yoy).

Customs and excise revenues were recorded at IDR 286.2 trillion or 95.4 percent of the target of IDR 300.1 trillion. However, customs and excise revenues were recorded to have contracted by 9.9 percent (yoy). Furthermore, PNBP and realized grants exceeded the target in Presidential Decree 75/2023, respectively IDR 605.9 trillion and IDR 13 trillion.