Indonesia's Fiscal Deficit Reached IDR 180.4 tn (0.7% of GDP) as of May-26

MACROECONOMY 

Govt. Responds to Foreign Fund’s ‘Sell Indonesia’ Call, Highlights Fiscal Strength 
Finance Minister Purbaya Yudhi Sadewa responded to comments from K2 Asset Management, which identified “sell Indonesia” as its main Asian investment strategy. Purbaya stated that Indonesia’s current economic conditions differ significantly from the 1998 crisis period, citing healthy fiscal conditions and solid economic fundamentals. He also highlighted the govt.’s latest fiscal data, which showed May-26 APBN deficit at IDR 180.4 tn (0.7% of GDP), still below the FY26 deficit target of 2.68% of GDP, while maintaining a primary surplus of IDR 58.6 tn. State revenue reached IDR 1,185 tn (+19.1% YoY) through May-26. (Bloomberg Technoz) 

BI and Govt. Agreed on Two Measures to Support Rupiah Stability 
BI Governor Perry Warjiyo outlined two key fiscal-monetary coordination measures aimed at supporting rupiah stability. First, BI and the govt. will seek to enhance the attractiveness of domestic financial instruments by increasing yields to encourage foreign capital inflows into equities, government bonds (SBN), and BI securities (SRBI). Second, both authorities will maintain adequate liquidity in the money market and banking system through cash management coordination, including keeping govt. funds at BI with improved remuneration arrangements. The measures are part of broader efforts to strengthen policy coordination amid ongoing pressure on the rupiah and domestic financial markets. (Bloomberg Technoz) 

Govt. Orders Acceleration of Tanjung Priok Container Clearance 
Finance Minister Purbaya Yudhi Sadewa instructed the Directorate General of Customs and Excise to immediately resolve container congestion at Tanjung Priok Port after container backlogs reached around 3,100 units, causing longer dwelling time and disrupting raw material supply for businesses. Customs was directed to increase manpower and extend operations to 24-hour shifts until the queue returns to a normal level of approximately 500 containers per day. During the inspection, Purbaya identified two key issues: a surge in import volumes during Apr-26 and the prolonged storage of containers that had already completed customs clearance. The govt. is also evaluating potential sanctions for importers that leave cleared containers at the port for extended periods. (Bloomberg Technoz) 

BI Reaffirmed Strong Fiscal-Monetary Coordination to Support Economic Stability 
BI Governor Perry Warjiyo emphasized that fiscal and monetary authorities remain closely coordinated to maintain economic stability and support growth. The statement followed a meeting between BI, the Ministry of Finance, and the DPR to evaluate recent economic developments amid pressure on the rupiah and equity market. Authorities agreed to further strengthen coordination, particularly in supporting exchange rate stability while maintaining growth momentum, with each institution operating within its respective mandate. (Bloomberg Technoz) 

Indonesia's Fiscal Deficit Reached IDR 180.4 tn (0.7% of GDP) as of May-26 
Indonesia recorded an APBN deficit of IDR 180.4 tn, equivalent to 0.7% of GDP, as of May-26, compared to a deficit of IDR 20.9 tn (0.09% of GDP) in the same period last year. Despite the deficit, the figure remains below the FY26 target of IDR 689.1 tn (2.68% of GDP). State revenue reached IDR 1,185 tn (+19.1% YoY), representing 37.6% of the FY26 target, while state expenditure increased 34.4% YoY to IDR 1,365.4 tn, equivalent to 35.5% of the annual budget target. Meanwhile, the primary balance remained in surplus at IDR 58.6 tn, and budget financing realization reached IDR 379.4 tn (+16.2% YoY). (Bloomberg Technoz)

INDUSTRY 
Govt. Issued Regulation on Strategic Commodity Export Centralization 
The Indonesian govt. issued a regulation centralizing exports of strategic commodities under state control. Effective 1 Jun-26, exports of palm oil, coal, and ferroalloys must be routed through PT Danantara Sumberdaya Indonesia (DSI), with DSI acting as the designated exporter/intermediary and having authority to set export prices and margins. Existing contracts remain valid, while from 1 Jan-27 strategic commodity exports can only be conducted by DSI. The policy may later be expanded to other commodities, with exemptions available for certain govt.-approved investment and downstreaming agreements. (IDN Financials)