Jakarta. Finance Minister Purbaya Yudhi Sadewa stated that the government has not yet discussed further the planned revision of the State Finance Law.
As is known, Commission XI of the Indonesian House of Representatives (DPR RI) has included the State Finance Bill as a priority in the 2025 National Legislation Program (Prolegnas) list.
“No, there haven’t been any discussions yet. There haven’t been any discussions about that as of yet. But what’s clear is that we will maximize the available budget within the existing limits,” Purbaya told the media on Friday (September 26, 2025).
Purbaya ensured that the deficit and debt ratio regulations in the State Finance Bill would be directed towards optimal economic impact. In this regard, available funds would not be left idle until the end of the year but would be activated immediately.
He added that if under certain conditions there is an urgent need, then this matter will be reconsidered.
“But if the economy grows rapidly, taxes will also increase. The gross domestic product (GDP) ratio (debt and deficit) will definitely decrease,” he explained.
Purbaya explained that during the previous administration of President Susilo Bambang Yudhoyono, when the private sector was more active, the tax-to-GDP ratio was around 0.5% higher than during President Jokowi’s term.
According to him, the difference is already worth more than IDR 100 trillion and represents additional revenue without any additional effort. Purbaya added that if economic growth could be accelerated, the results would be even better. For example, if economic growth increased by 1% from 5% to 6%, an additional 1% of GDP would be equivalent to approximately IDR 250 trillion.
“I added Rp 350 trillion in total. That’s why we’re working hard now to ensure the policies I pushed yesterday are implemented. And soon, we’ll also be addressing bottlenecks in the private sector,” he explained.
Previously, Purbaya stated that his party would not change the deficit limits or debt ratio in the State Budget in the Draft State Finance Law (RUU).
He revealed that in preparing the State Budget, the government will continue to adhere to the deficit limit of a maximum of 3% of Gross Domestic Product (GDP), in accordance with the regulations in Law Number 17 of 2003 concerning State Finance in Indonesia.
Purbaya also emphasized that if the policy decisions he takes have a positive impact on the economy, the economy will be more vibrant and tax revenues will also increase.
Thus, he said, there should be no need for changes to the law to increase the deficit or debt limit, which is 60% of GDP.
However, Purbaya believes that the state budget deficit and debt ratio stipulated in Law No. 17 of 2023 are unfounded. He believes these limits emerged when policies in most developed countries, such as the United States and Europe, considered them indicators of a country’s debt repayment.
“So, what’s really being looked at is the two countries’ capabilities. So, those figures aren’t significant, they’re just initial indicators. Investors are only looking at whether they can repay their debts or are willing to repay them,” he explained.
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