Vehicles drive on a highway as dark clouds are seen over the skyline during the rainy season in Jakarta, Indonesia, on Mar 2, 2024. REUTERS/Willy Kurniawan)JAKARTA: Indonesia's budget deficit this year is estimated at 2.7 per cent of gross domestic product, higher than the government's 2.29 per cent target, as state spending is expected to increase due to the rupiah's depreciation, its finance minister said on Monday .
The government's spending on fuel subsidies has increased due to the weaker rupiah, but Finance Minister Sri Mulyani Indrawati said the government will remain vigilant in its debt management and will optimise the use of its excess cash from last year's budget. "Hopefully this will help maintain macroeconomic stability, especially the exchange rate movements and government bond yields," she told the parliamentary budget committee.