Indonesia Revises 2024 Budget Deficit to 2.7% of GDP Due to Weak Rupiah

Increased government spending and rising subsidies drive larger fiscal shortfall amid currency depreciation.

The 2024 budget deficit is now projected at 2.7% of GDP, up from the initial 2.29% forecast.
Government spending surged by 87 trillion rupiah, driven by higher subsidy costs and election-related expenses.
The rupiah's depreciation to a four-year low against the dollar has strained the budget.
Despite the deficit, Indonesia plans to reduce bond issuance by utilizing cash reserves from the previous year.
Central Bank may consider monetary easing in the fourth quarter to support economic growth.