The sale comes as the administration of President Prabowo Subianto looks to fund a budget deficit that risks exceeding the legal cap of 3% of gross domestic product (GDP) in 2026.
Indonesia has set its budget deficit target at 2.68% of GDP this year, with total net bond issuance — including local- and foreign-currency debt — pegged at 799.5 trillion rupiah in 2026. The gap hit the highest level in at least two decades in 2025.
Citigroup Inc raised its 2026 budget deficit forecast to 3.5% of GDP from 2.7%, citing expectations of faster spending on the free-meals programme and larger transfers to regional governments.
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