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Indonesia's 2021 budget deficit target has been widened.

The Indonesian government has raised the 2021 state budget deficit by 0.2 percent to 5.7 percent of the national gross domestic product.

The government agreed with the DPR budget committee to widen the budget deficit due to the uncertainty created by the coronavirus pandemic, which has affected the tax revenue. Finance Minister Sri Mulyani Indrawati stated that the revision would reflect the new reality as the target of state revenues for 2021 was slashed by Rp32.7 trillion to Rp1,743.7 trillion. The decline corresponds to the target of tax receipts lowered by Rp37.4 trillion to Rp1,444.5 trillion.

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