For the first time this year, Indonesia's state budget saw a deficit with government spending rising across the board, including an increase in spending on energy subsidies as global oil prices remain high.
In a virtual press conference detailing Indonesia's state budget, the Indonesian Minister of Finance Sri Mulyani stated that as of October 2022, Indonesia's state budget saw a deficit of Rp169, 5 trillion. This accounted for minus 0,91% of Indonesia's GDP.
This comes as spending for energy subsidies continued to see an increase, even despite the government's decision to raise the price of subsidized fuel by up to 30% in September 2022. For example, spending on fuel subsidies increased to Rp13,3 trillion so far this year, much higher than the Rp11, 7 trillion spent in the same period last year.
Government spending on subsidies for three Kilogram, LGP gas tanks also rose as did spending for covering electricity subsidies in Indonesia.