Indonesia’s budget deficit hits almost 34 billion USD
Indonesia’s state budget deficit had reached 500.5 trillion Rp (33.96 billion USD) by the end of August, equivalent to 3.05 percent of the country’s gross domestic product (GDP), Finance Minister Sri Mulyani Indrawati said on September 22.
Finance Minister Sri Mulyani Indrawati (Photo: Bloomberf)
Jakarta (VNA) - Indonesia’sstate budget deficit had reached 500.5trillion Rp (33.96 billion USD) by the end of August, equivalent to 3.05 percent of the country’s gross domestic product (GDP), Finance Minister SriMulyani Indrawati said on September 22.
This is the first time thestate budget deficit has reached beyond 3 percent since the government relaxedthe legal limit through the Law No. 2/2020 to help fund the fight against thepandemic.
The government expects thebudget deficit to reach 6.34 percent this year, up from the initial deficit capof 3 percent, as it allocated 695.2 trillion Rp worth of stimulus to rescue the economy.
The Finance Ministry’s data show that the country had collected 1.03quadrillion Rp in state revenue as ofAugust, marking a decrease of 13.1 percent year-on-year (yoy) following a dropin both tax revenue and non-tax income. The collected figure is about 60.8percent of this year’s revenue target.
Tax revenue, the mainsource of income for the government, fell 15.6 percent yoy to 676.9 trillion Rp due to a sharp fall in corporate taxes and importtaxes amid slowing economic activity.
Meanwhile, state expenditurerose 10.6 percent yoy to 1.53 quadrillion Rp during the same period, or 56 percent of this year’starget. Central government expenditure rose 14 percent to 977.3 trillion Rp driven by higher social and stimulus spending. Ithad spent around 36 percent of the 695.2 trillion Rp COVID-19 stimulus budget as of September 19./.
Indonesian Minister of Finance Sri Mulyani Indrawati and his US counterpart Steven T. Mnuchin remotely completed the signing of the Cooperation Framework to Strengthen Infrastructure Finance and Market Building on September 18.
Indonesia’s Ministry of Finance has issued Regulation No.131/PMK.04/2020 concerning procedures for imposing tariffs on imported goods based on the ASEAN Goods Trade Agreement.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
In the latest Indonesia-US trade agreement in July, the US administration agreed to reduce the reciprocal tariff, which was initially set at 32% by US President Donald Trump last April, to 19%.
Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31% are at least 30 years old. In 10 years, this number is expected to climb to 1,160, assuming none is sold en bloc.
The new framework is designed to ensure that incoming investments deliver tangible national benefits, such as the creation of high-quality jobs for Malaysians and the development of local company ecosystems and technologies.
Singapore led with a total of 8.8 billion USD in realised investment, followed by Hong Kong and mainland China, Malaysia, and Japan with 8 billion USD, 1.7 billion USD and 1.6 billion USD, respectively.
Thai Acting Prime Minister Phumtham Wechayachai on August 7 outlined his strategy for tackling drug problems in Thailand, aiming for a "Zero Drugs Thailand" within three months.
The US has described Malaysia's role as Chair of the Association of Southeast Asian Nations (ASEAN) as vital in helping ease tension between Thailand and Cambodia.
Indonesia ranks as the world's sixth-largest gold reserve holder, producing an estimated 160 to 200 tonnes annually, mainly through major state-owned enterprises. Despite this, much of the mined gold is held or traded abroad. In 2024 alone, Indonesia exported gold worth 5.4 billion USD while reimporting 2.6 billion USD worth of the metal.
Cambodia and Thailand vowed not to undertake provocative actions that may escalate tensions, including entering the other side’s air space and territory, and refrain from constructing or enhancing military infrastructure.
Finance Minister Sri Mulyani Indrawati (Photo: Bloomberf) 
