Indonesia posts 2.3% budget deficit in 2024, lower than expected
But analysts say the country’s debt burdens, the government’s big spending plans and global uncertainties cast a shadow over its long-term fiscal health
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[JAKARTA] Indonesia maintained a manageable fiscal position in 2024, but long-term fiscal health has remained a concern due to ambitious government spending, alongside the risks of declining revenue and rising debt burdens.
South-east Asia’s largest economy recorded a fiscal deficit of 2.3 per cent of gross domestic product last year. The figure was below the government’s projections, but slightly higher than the previous year’s shortfall, data from the Ministry of Finance indicated on Monday (Jan 6).
Finance Minister Sri Mulyani Indrawati commended the lower-than-expected deficit, describing it as a solid foundation for the transition to the new administration under President Prabowo Subianto, who was inaugurated in October 2024.
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