Indonesia to Revise State Budget Law, Open Deficit Ceiling Not a Priority

The Indonesian government plans to amend the law governing 2025 budget planning. The legislation sets out objectives for fiscal discipline and sustainable growth. The proposed changes aim to make the budgeting process more transparent and participatory. The law will strengthen the efficient use of fiscal resources and enhance oversight of public spending. A lawmaker noted that the ceiling on the deficit is not the focus of this revision. Instead, the priority is to achieve a balanced budget and ensure long‑term fiscal stability. Officials announced that the new draft law will apply to the 2025 fiscal year and will come into full effect from 2026. The legislation seeks to keep Indonesia’s fiscal policies up to date. This is not investment advice.