Indonesia has posted a budget surplus of 107.4 trillion rupiah ($7.10 billion) for the January to August period, equivalent to 0.58% of gross domestic product and a marked improvement on the 2.26% deficit for the same period in 2021.
Finance Minister Sri Mulyani Indrawati said though that the government was expecting the surplus to be depleted by large energy subsidies in the third and fourth quarters of this year.
“We will use all of our excellent state revenue,” she told a news conference, referring to the financing of the subsidies.
Energy subsidies in Indonesia for 2022 are projected to go up as much as 649 trillion rupiah ($42.91 billion), more than triple its original budget, despite the recent fuel prices hike.
Government revenues increased by 49.8% on a yearly basis in the January-August period to 1,764.4 trillion rupiah ($116.65 billion), which the minister attributed to high commodity prices and continuous economic recovery from the pandemic.
Spending rose 6.2% on a yearly basis to 1,657 trillion rupiah.
Sri Mulyani said that the finance ministry has sold 95.42 trillion rupiah worth of local currency bonds with low returns to the central bank this year, part of the two agencies’ bond sale agreement signed in 2021.
Under the deal, Bank Indonesia will purchase government bonds worth up to 439 trillion rupiah in 2021 and 2022.