Finance Minister Sri Mulyani Indrawati said the budget deficit was higher from the target of 1.8 percent of GDP. Despite the increasing deficit, Indonesia is able to maintain economic growth throughout 2019 in the range of five percent.
"Compared to other countries with larger deficits and low economic growth, Indonesia's conditions are still better," she said, at a press conference at the Ministry of Finance Office, Central Jakarta on Tuesday, January 7, 2020.
The budget deficit occurred because the country's revenue in 2019 was IDR 1,957.2 trillion or only 90.4 percent of the target of IDR 2,165.1 trillion. The temporary realization of state revenue last year only grew around 0.7 percent.
Meanwhile, state expenditure was recorded at IDR 2,310.2 trillion or 93.9 percent of the target of IDR 2,461.1 trillion. State expenditure during 2019 experienced a growth of 4.4 percent, although lower than the previous year which grew 10.3 percent.
In addition there are transfers to the Regional and Village Funds (TKDD) reaching IDR 811.3 trillion or reaching 98.1 percent of IDR 826.8 trillion. The realization of the TKDD budget last year was 7.1 percent higher compared to the realization in 2018.