Fiscal Burden and Declining Investor Confidence
Monday, December 1, 2025
State revenue fell 6 percent in the third quarter amid a slowing economic cycle, with growth now projected to slip below 5 percent.
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WITH only a month left in the year, one conclusion has become increasingly difficult to ignore: Indonesia’s public finances have come under severe strain throughout 2025. Government revenue has fallen sharply, widening the budget deficit and exposing structural weaknesses that had been masked during the post-pandemic rebound.
Over the first 10 months of the year, state revenue dropped by six percent compared with the same period in 2024. T
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