Indonesia to Post Largest Fiscal Deficit in Three Decades Worth over IDR 1,000 Trillion

May 20, 2020

Indonesia’s Ministry of Finance (MoF) has projected that the Government of Indonesia will post its largest fiscal deficit in over three decades in 2020, as a result of plummeting state revenues following cuts to corporate income tax and the Government’s stimulus plans to revive the economy, as it copes with the COVID-19 pandemic.

According to the Finance Minister, Sri Mulyani Indrawati, the deficit in government revenue is expected to reach IDR 1,028.5 trillion (USD 69 billion), estimated at 6.27% of Indonesia’s gross domestic product (GDP) in 2020. Sri Mulyani added that the deficit, which is the largest since 1988, was attributed to the efforts to overcome the COVID-19 pandemic.