2026 State Budget Passed: DPR Approves $230 Billion Spending
Jakarta. The House of Representatives (DPR) on Tuesday approved the 2026 state budget (APBN) in its fifth plenary session, marking the first budget under President Prabowo Subianto’s administration.
The approval was led by House of Representatives Chairperson Puan Maharani after lawmakers voiced unanimous support.
The 2026 APBN sets state revenue at Rp 3,153.6 trillion ($189.7 billion) and state expenditure at Rp3,842.7 trillion ($230.7 billion), leaving a deficit of Rp689.1 trillion, or 2.68 percent of GDP. The government also targets a primary balance of Rp89.7 trillion.
House Budget Committee Chair Said Abdullah said the budget is designed as a fiscal tool to tackle global challenges while revitalizing national industries. “This APBN is positioned as a driver of recovery, supporting small and medium enterprises, logistics, transport, and tourism,” he said.
Finance Minister Purbaya Yudhi Sadewa underscored that the budget reflects Prabowo’s vision of food and energy sovereignty, while accelerating inclusive growth. “The 2026 APBN is crafted to boost economic activity, raise household purchasing power, and strengthen the real sector,” he noted.
He added that fiscal policy priorities will focus on equitable welfare, stronger fundamentals, and stability. “Through this budget, the government seeks to accelerate growth, create jobs, and deliver more even distribution of prosperity,” Purbaya mentioned.
Key Figures in 2026 APBN
- Revenue: Rp3,153.6 trillion ($189.7 billion)
- Tax: Rp2,357.7 trillion
- Customs & excise: Rp336 trillion
- Non-tax (PNBP): Rp459.2 trillion
- Expenditure: Rp3,842.7 trillion ($230.7 billion)
- Central government: Rp3,149.7 trillion
- Ministries/agencies: Rp1,510.5 trillion
- Non-ministerial institutions: Rp1,639.2 trillion
- Transfers to regions: Rp693 trillion
- Deficit: Rp689.1 trillion (2.68 percent of GDP)
- Primary Balance: Rp89.7 trillion
Macroeconomic Assumptions
- Growth: 5.4%
- Inflation: 2.5%
- Rupiah: Rp16,500 per US dollar
- 10-year bond yield: 6.9%
- Oil price: $70 per barrel
- Oil lifting: 610,000 barrel per day
- Gas lifting: 984,000 barrel per day
Welfare Targets
- Unemployment: 4.44–4.96%
- Poverty: 6.5–7.5%
- Extreme poverty: 0–0.5%
- Gini ratio: 0.377–0.380
- GNI per capita: $5,520
- Formal job creation: 37.95 million
- Emissions reduction: 37.14%
- Environmental quality index: 76.67
Related Articles
Indonesia Offers 0% Income Tax for Exporters Keeping Export Proceeds in Domestic Banks
Indonesia will grant a 0% income tax rate to compliant exporters that retain export earnings in domestic banks.
Finance Minister Purbaya Jokes He Is ‘Stressed’ as Rupiah Nears 17,800 per Dollar
Purbaya Yudhi Sadewa said Indonesia’s weak rupiah does not reflect the country’s economic fundamentals and ruled out a budget revision.
Finance Minister Names Major Palm Oil Exporters in Transfer Pricing Probe
"We will not make these companies shut down, but they must pay their obligations based on the examination results,” he said.
Purbaya Says New State Export Agency Will Not Replace Customs Authority
Indonesia says new export agency DSI will manage commodity trade reporting while Customs retains oversight powers.
Indonesia Delays EV Incentive Rollout
Indonesia delayed its EV incentive rollout to July 2026 as the government finalizes subsidy calculations and tax schemes.
Indonesia Finds Transfer Pricing at All Top 10 Palm Oil Exporters
Finance Minister Purbaya says a government review uncovered suspected transfer pricing practices causing major revenue losses.
Indonesia Investigated Major Palm Oil Exporters Before Launching New Trade Regime
Indonesia’s new centralized export policy was triggered by alleged invoice manipulation and underreported palm oil exports, Purbaya said.
Purbaya Says Fresh Dollar Inflows Will Push Rupiah Toward Rp 15,000
Purbaya says tighter export dollar rules and fresh inflows from bonds could strengthen the rupiah toward Rp 15,000.
Market Panic Over Export Body Is Temporary, Purbaya Says
Purbaya said investors panicked over uncertainty surrounding Indonesia’s planned export body, dragging JCI to a March low.
Government Bets on Private Sector to Hit 6.5% Growth in 2027
Purbaya said Indonesia’s 2027 growth target of up to 6.5% is achievable as the government pushes private-sector expansion.The Latest
Rupiah Hits Rp 17,926 Against US Dollar Amid Oil Surge and Geopolitical Risks
Rupiah fell to Rp 17,926 per US dollar as rising oil prices, Middle East tensions, and strong dollar demand weighed on sentiment.
Indonesia to Cut Royalty Income Tax for Writers to 1.5%
The tax cuts will be available for authors who publish work with a clear International Standard Book Number (ISBN).
Shinhan Bank Indonesia Launches Flazz Top-Up Feature on SOL Indonesia Application
Shinhan Bank Indonesia enables seamless Flazz top-ups via the SOL Indonesia mobile banking app.
Prosecutors Confirm Raid on National Nutrition Agency Office
Indonesian prosecutors confirmed a raid on the National Nutrition Agency a day after President Prabowo replaced its leadership.
Indonesia’s C-130 Hercules Repair Center to See Progress by 2028
Washington has picked Indonesia to be Asia’s hub for maintenance, repair, and overhaul (MRO) of the C-130 Hercules.Most Popular
