President Prabowo Subianto has laid out his commitment to bring Indonesia’s state budget (APBN) to a zero-deficit position, sharing his plans during the presentation of the 2026 State Budget Bill at the Parliament Complex in Senayan. The 2026 budget proposal includes state spending set at Rp 3,786.5 trillion and projected revenue of Rp 3,147.7 trillion, aiming for a fiscal deficit of Rp 638.8 trillion (2.48% of GDP) to be financed through sustainable means.
Prabowo expressed his administration’s dedication to implementing efficiency measures to minimize the deficit, with a long-term goal of achieving a deficit-free state budget in the coming years. He highlighted the importance of courage and determination in addressing budget leakages, urging support from all political groups in Indonesia.
The government plans to enhance creative financing options to reduce reliance on the APBN for development funding. Prabowo emphasized the need for a flexible budget that can withstand global economic shocks, emphasizing revenue optimization, improved spending quality, and innovative financing to maintain credibility.
Efforts will be made to increase tax revenues while ensuring a conducive environment for investments and sustainable businesses. Fiscal incentives will be strategically targeted to support key economic sectors. Prabowo also stressed the efficient management of natural resources to enhance prosperity and welfare for the people through added value generation.
Overall, the government is committed to cracking down on budget leakages, implementing innovative financing strategies, and optimizing revenue streams to achieve a sustainable and deficit-free state budget in the future.
