IDR 257.8 Trillion Budget Deficit for Indonesia in the First Half of 2020

According to local media, Indonesia reported a budget deficit of IDR 257.8 trillion (USD 17.5 billion) in the first half of 2020, amounting to 1.57% of the country’s gross domestic product.

Although this was the highest half-yearly budget deficit since the first half of 2016, media reports indicated that it was well below the Government of Indonesia’s expectation of 6.34% for 2020.

Addressing a press briefing on the 22nd of July 2020, Indonesia’s Finance Minister, Sri Mulyani Indrawati, announced the Government’s plan to speed up state spending into the second half of 2020 to strengthen the economic recovery. The Government has received backlash from the Pre...