JAKARTA - Indonesia will revise its 2020 budget for a second time this year to accommodate a $43 billion stimulus to support economic growth amid the coronavirus pandemic, with the deficit seen swelling further, the country's finance minister said on Monday.

Minister Sri Mulyani Indrawati said the "National Economic Recovery" programme, worth 641.17 trillion rupiah ($43.26 billion), includes tax breaks, subsidies for interest payments for small firms, liquidity support for the banking industry to restructure loans, bailouts for state firms and other measures.

The programme is an expansion of the $25 billion COVID-19 spending response that President Joko Widodo announced in late March.

The new budget deficit is expected to swell to 6.27% of gross domestic product, larger than her previous forecast of 5.07%, Indrawati told an online news conference, adding the total size of the budget would be 2,720.1 trillion rupiah ($183.54 billion).

"We will speak to parliament about the changes ... and we will talk to a larger audience too, to stakeholders, business people, so they can understand the concept," Indrawati said.

The budget revision would also reflect bigger-than-expected pressure on government revenues due to the pandemic and weak commodity prices, she said. Indrawati is forecasting a 13.6% drop in revenues this year, compared with her earlier estimate of a 10% fall.

The programme contains 149.3 trillion rupiah financial help for 12 state firms, including an 8.5 trillion rupiah short-term loan for airline Garuda, cash compensation of 48.9 trillion rupiah for power utility PLN and 45 trillion rupiah for oil and gas firm Pertamina.

The government plans to also place 87.6 trillion rupiah of funds at big banks, which will be tasked with channelling funds to other banks having trouble restructuring loans for small- and medium-sized companies, Indrawati said.

The estimated additional bond issuance due to the revision is 175 trillion rupiah, said the finance ministry's head of financing Luky Alfirman.

Previous New Assumption

assumption GDP growth (%, 2.3 -0.4 to 2.3 y/y) Inflation (%, y/y) 3.9 2.0 to 4.0 Rupiah exchange 17,500 14,900 to 15,500 rate (per dollar) Indonesian crude 38 30 to 35 price ($/barrel) Oil lifting (bpd) 735,000 695,000 to 725,000 Gas lifting 1.064 mln 990,000 to 1.050 mln (boepd)

($1 = 14,820.0000 rupiah)

(Reporting by Gayatri Suroyo; Editing by Catherine Evans and Ed Davies) ((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))