The Ministry of Finance noted that the State Budget (APBN) deficit in February 2025 reached Rp31.2 trillion (US$1,9 billion) or equivalent to 0.13 percent of Gross Domestic Product (GDP), wider than the January 2025 deficit which was recorded at Rp23.5 trillion (US$1,4 billion) or 0.10 percent of GDP. 

Finance Minister Sri Mulyani cited that during the first two months of this year, State revenue was recorded only at Rp316.9 trillion (US$19,2 billion) or down 20 percent compared to the same period last year, which reached Rp400.4 trillion (US$$24,32 billion).

Meanwhile, State spending fell 7 percent to Rp348.1 trillion (US$ 21 billion) from the previous Rp374.3 trillion (US$ 22,67 billion).

“The State Budget deficit is still within the designedtarget of 2.53 percent of GDP. Meanwhile, the primary balance surplus was recorded at Rp48.1 trillion (US$ 2.9 billion)," Sri Mulyani told the monthly APBN KiTA press conference at the Ministry of Finance Building, on Thursday, March 13, 2025.

However, if compared to February 2024 which recorded a surplus of Rp26 trillion, this year's conditions show a significant widening of the deficit. The primary balance, which is the difference between State revenue and State spending, excluding debt interest payments, also fell sharply from Rp95 trillion in February 2024 to Rp48.1 trillion.

Tax revenue drops 30 percent

The decline in State revenue was mainly due to a decline in tax revenue which only reached Rp240.4 trillion (US$14,57 billion) or 9.7 percent of this year's target. This amount fell by almost Rp80 trillion compared to the same period last year which reached Rp320.5 trillion (US$19,53 billion)

Tax revenue is the main factor in the decline in state revenue, with a decline of up to 30 percent from Rp269 trillion in February 2024 to Rp187.8 trillion this year. This figure has only reached 8.6 percent of the 2025 tax revenue target.

Non-Tax State Revenue (PNBP) also decreased from Rp79.7 trillion to Rp76.4 trillion. Despite the decrease, PNBP revenue has reached 14.9 percent of the annual target.

Decreased State spending

On the other hand, State spending has also decreased, especially Ministry/Institution spending which fell drastically from Rp120 trillion in February 2024 to Rp83.6 trillion in February this year. This is in line with the government's budget efficiency efforts.

However, non-Ministry/Institution spending actually increased from Rp119.6 trillion to Rp127.9 trillion in February 2025. Transfers to regions also increased from Rp134.7 trillion to Rp136.6 trillion.

Sri Mulyani emphasized that despite the widening deficit, the government remains optimistic that the 2025 State Budget deficit is still within safe limits and in accordance with this year's fiscal planning.