Indonesia logged a budget deficit of 54.6 trillion rupiah in January, the finance ministry reported on Monday, representing 0.21% of the country's gross domestic product. The ministry attributed the gap to a combination of stronger revenues and even larger increases in government spending.
Revenue and expenditure details
Tax and other receipts for the month totaled 172.7 trillion rupiah, a 20.5% increase from the same month a year earlier. The ministry noted that lower tax refunds contributed to the rise in revenues and that these figures align with data released earlier this year.
On the spending side, outlays climbed 25.7% year-on-year to 227.3 trillion rupiah. That increase outstripped revenue growth and produced the 54.6 trillion rupiah deficit in January.
Market context and investor focus
Investors are closely watching the government's fiscal trajectory following a rocky start to 2026 in Indonesia's financial markets. That volatility was prompted by concerns cited by market participants about the country's fiscal health, the independence of its central bank and the transparency of its stock exchange.
Officials typically record a budget surplus in the early months of the year when tax collections tend to be stronger and when some significant expenditures - including subsidy payments - are scheduled later in the year. The January deficit therefore contrasts with the usual seasonal pattern but reflects the reported timing of revenues and spending.
Earlier revenue weakness and administrative issues
The ministry's statement recalled that in the prior year, early-month revenues were weak for several months. That weakness was in part linked to a problematic rollout of a major upgrade to the tax office's core system, which affected collections.
Exchange rate note
The finance ministry's release included the exchange-rate reference of 1 US dollar equaling 16,795 rupiah.
This report presents the ministry's data as released; it does not offer forecasts or assessments beyond the information provided by the ministry.