Jakarta, Jan. 27 -- Indonesia has widened its budget deficit to near the 3 percent legal ceiling to prevent a repeat of the 1997-1998 economic crisis, Finance Minister Purbaya Yudhi Sadewa said on Tuesday.

Speaking at the Indonesia Fiscal Forum (IFF) 2026 in Jakarta, Sadewa said the decision was not an easy one, but necessary to maintain the momentum of national economic growth amid mounting slowdown pressures.

"From the government side, spending and other measures, I ensure that everything is aimed at turning the economy around. As a result, the fiscal impact is a wider deficit. But this is a step that must be taken. If not, we could end up like in 1998 again," he stated.

Preliminary data for the 2025 State Budget (APBN) shows a defic...