Jakarta. The House of Representatives on Tuesday passed the 2026 State Budget Law in a plenary session attended by Finance Minister Purbaya Yudhi Sadewa.

The budget foresees a wider fiscal deficit than this year but is intended to serve as a tool to achieve the government’s short- and medium-term development goals, while also acting as a buffer for low-income households against economic shocks.

Macroeconomic Assumptions

Economic growth: 5.4 percent 
Inflation: 2.5 percent 
Exchange rate: Rp 16,500 per US dollar
10-year government bond yield: 6.9 percent 
Indonesian crude oil price (ICP): $70 per barrel
Oil lifting: 610,000 barrels per day
Gas lifting: 984,000 barrels of oil equivalent per day

Key Projections

State revenue: Rp 3,153.58 trillion

• Tax revenue: Rp 2,693.71 trillion
• Non-tax revenue (PNBP): Rp 459.2 trillion
• Grants: Rp 660 billion

State expenditure: Rp 3,842.72 trillion

• Central government spending: Rp 3,149.73 trillion
• Ministries: Rp 1,510.55 trillion
• Non-ministerial agencies: Rp 1,639.19 trillion
• Transfers to regions: Rp 692.99 trillion

Budget deficit: Rp 689.15 trillion, or 2.68 percent of GDP

Welfare Indicators

• Open unemployment rate: 4.44–4.96 percent 
• Poverty rate: 6.5–7.5 percent 
• Extreme poverty rate: 0–0.5 percent 
• Gini ratio: 0.377–0.380
• Human Capital Index: 0.57
• Farmers’ Welfare Index: 0.7731
• Formal job creation: 37.95 percent 
• GNI per capita: $5,520

Finance Minister Purbaya stressed that fiscal discipline will remain a priority, but the 2026 budget is also designed to accelerate growth, create jobs, and reduce inequality, while ensuring macroeconomic stability.