Sri Mulyani Suggests Allocating IDR 85.6 Trillion from SAL to Offset Budget Deficit

Jakarta: The government has proposed the use of the Excess Budget Balance (SAL) of IDR 85.6 trillion to fund the 2025 State Budget (APBN) deficit, which is projected to widen to 2.78 percent of GDP. This is done so that state financial financing does not rely entirely on debt issuance.

"We are asking for the DPR's approval to use the IDR 85.6 trillion SAL, so that the increase in the deficit does not have to be financed entirely by debt issuance, but using existing cash," said Finance Minister Sri Mulyani Indrawati in a Working Meeting with the DPR Budget Agency, quoted on Wednesday, July 2, 2025.

The current SAL is recorded at IDR 457.5 trillion. Therefore, she hopes that parliament can approve the proposal to use part of the SAL to finance this year's APBN deficit.

State revenue is projected to decline

The government is widening the budget deficit because state revenue is projected to be lower than previously set. Referring to data from the Ministry of Finance, state revenue is projected to only amount to IDR 2,865.5 trillion.

The state revenue is lower than the initial APBN which reached IDR 3,005.1 trillion. Meanwhile, on the other hand, state spending is projected to be IDR 3,527.5 trillion from the previous IDR 3,621.3 trillion.

Thus, the APBN deficit which was originally compiled at 2.53 percent of GDP, or IDR 616.2 trillion, will swell to IDR 662 trillion.

"We hope that the 2.78 percent deficit will signal that the 2025 APBN supports various important programs and on the other hand becomes a countercyclical signal to the world economy which tends to weaken and risks are increasing," explained Sri Mulyani.