Jakarta. Prabowo Subianto reaffirmed that Indonesia has no plans to change its fiscal deficit cap, stressing that the rule remains a key safeguard to maintain discipline in managing the state budget.

“The deficit cap is a good tool to discipline ourselves. Indonesia has no plan to change that rule unless there is a very major emergency like Covid-19,” Prabowo said in an official statement received Monday.

Indonesia currently limits its fiscal deficit to 3% of gross domestic product (GDP). Prabowo said the government would only consider exceeding that threshold under extraordinary circumstances. He compared the potential scenario to the Covid-19 pandemic, when Indonesia was legally allowed to breach the deficit ceiling for two years to fund emergency spending and protect the public.

“Do not spend more than your income. That is the basic principle of life for survival,” Prabowo said.

Data from the Ministry of Finance of Indonesia showed that the 2026 state budget posted a deficit of Rp 135.7 trillion as of February, equivalent to 0.53% of GDP. On a yearly basis, the deficit surged 342.4%.

State revenue reached Rp 358 trillion as of Feb. 28, growing 12.8% year-on-year, while state spending climbed sharply 41.9% year-on-year to Rp 493.8 trillion.

Prabowo acknowledged that short-term pressure on the deficit could arise if global crude oil prices surge for a prolonged period, particularly amid escalating conflict in the Middle East. Even so, he stressed that breaching the deficit ceiling would remain a last-resort option.

Although many countries, including members of the European Union, have loosened strict deficit targets, Prabowo said Indonesia should remain consistent in maintaining fiscal prudence.

The president also openly rejected economic thinking that encourages aggressive borrowing to achieve higher growth, saying his views were shaped by a personal principle to keep spending aligned with available resources.

Read More: 3 Ways Indonesia Can Tackle the $100 Oil Shock

“I hope we will not need to change it. In fact, I do not believe in deficits. Maybe I am an old-fashioned person,” he said.

Prabowo added that tensions surrounding Iran serve as a reminder for Indonesia to accelerate its transition toward renewable energy. He said the country is relatively better positioned than some others because of domestic energy resources such as palm oil and coal, which help support national energy resilience.

The government will also continue developing renewable sources, including geothermal, solar, hydropower, and biofuels.

“If we succeed in getting through this, within two years, we will become very efficient. We will become very, very independent from external sources,” Prabowo said.