Indonesia's 2022 Budget Deficit at 2.38 Percent of GDP

JAKARTA, KOMPAS.com - Indonesia’s state budget deficit in 2022 reached just 2.85 percent of the gross domestic product (GDP), lower than the 4.50 percent target set in the revised state budget, Finance Minister Sri Mulyani Indrawati said on Tuesday, Jan. 3.

"The 2022 state budget deficit was recorded at 464.3 trillion rupiahs ($29.7 billion), down 40.1 percent compared to last year's deficit of 775.1 trillion rupiahs ($49.6 billion). This shows a great fiscal consolidation. When compared to GDP, it is only 2.38 percent of the GDP," Indrawati told a press conference.

Temporary state revenue realization reached 2,626.4 trillion rupiahs, or 115.9 percent of the 2,266.2 trillion rupiahs target outlined in Presidential Regulation No. 98/2022 on the 2022 state budget revision. The figure reflected a growth of 30.6 percent compared to 2021.

State revenue was supported by tax revenue, which reached 2,034.5 trillion rupiahs, or 114.0 percent of the 1,784.0 trillion rupiahs target, and showed an increase of 31.4 percent from tax revenue of 1,278.6 trillion rupiahs recorded in 2021.

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Moreover, non-tax state revenue (PNBP) reached 588.3 trillion rupiahs, or 122.2 percent of the 481.6 trillion rupiahs target. The 2022 PNBP reflected a growth of 28.3 percent from 458.5 trillion rupiahs the previous year.

"The performance of state revenues, whether it is taxes, customs, and non-tax revenues, has been outstanding for two consecutive years. When the economy improves, we will also begin to improve all state revenues," the minister said.

She said that state revenues, which were boosted by rising commodity prices that included national leading export commodities, were used to protect the society and the economy.

State spending in 2022 was recorded at 3,090.8 trillion rupiahs, or 99.5 percent of the 3,106.4 trillion rupiahs target set in the presidential regulation.

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The spending consisted of ministry and institution spending of 1,079.3 trillion rupiahs, or 114.1 percent of the 945.8 trillion rupiahs target; and spending on others of 1,195.2 trillion rupiahs, or 88.2 percent of the target.

"Non-ministry or institutional spending includes energy subsidies and very large compensation, which we explained when the fuel price went up," Minister Indrawati said.

The quantum of energy subsidies and compensation provided in 2022 reached 551.2 trillion rupiahs, or 109.7 percent of the 502.4 trillion rupiahs target. Initially, the target for energy subsidies and compensation was only 152.5 trillion rupiahs.