August 18, 2025 | 02:02 pm
TEMPO.CO, Jakarta - Researcher at the Centre for Strategic and International Studies (CSIS), Riandy Laksono, said a zero percent deficit or balanced budget is unnecessary. He explained that the state budget will remain safe as long as the deficit and debt ratio are kept under control.
"We can still operate with a deficit in the state budget, but it must stay below 3 percent and the debt ratio under 60 percent of gross domestic product (GDP)," Riandy told reporters at the CSIS office in Central Jakarta on Monday, August 18, 2025.
In his speech at the People's Consultative Assembly (MPR) on Friday, August 16, 2025, President Prabowo Subianto expressed the aspiration for a state budget without a deficit by 2027 or 2028.
Riandy argued that such a target is unnecessary. What matters, he said, is keeping the deficit and debt ratio within limits. He added that the challenge will be difficult to meet if the government fails to boost revenue, since spending is unlikely to be cut.
He also criticized the government’s plan for a 13.5 percent increase in tax revenue in 2025, calling it unrealistic. The 2026 state budget sets a tax revenue target of Rp 2,357 trillion, up sharply from the Rp 2,076.9 trillion projected for 2025.
Prabowo also stated at the Parliament Complex in Senayan, Jakarta, that state-owned enterprises managed by Danantara are expected to contribute US$50 billion to reduce the deficit. Riandy said this goal is unrealistic.
"It is very unrealistic to expect Danantara to suddenly contribute that much at the end of the first term," he remarked.
Prabowo earlier announced that the 2026 state budget deficit is planned at Rp 638.8 trillion or 2.48 percent of GDP. He reiterated his aspiration to one day deliver a budget with no deficit.
"My hope, my aspiration, is that in 2027 or 2028 I can stand before this assembly and announce that we have achieved a state budget with no deficit at all," he said at the Parliament Complex in Jakarta on Friday, August 15, 2025.
Ilona Estherina contributed to the writing of this article.
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