Jakarta. President Prabowo Subianto on Friday laid out a 2026 state budget blueprint that aims to shrink the fiscal deficit, ramp up spending on energy security and food resilience, and accelerate the country’s transition to renewable power, while committing hundreds of trillions of rupiah to a nationwide free nutritious meals program.

Presenting the 2026 annual budget speech before the parliament, Prabowo said government spending in 2026 is projected at Rp 3,786.5 trillion ($234 billion), with revenues expected at Rp 3,147.7 trillion. This leaves a planned deficit of Rp 638.8 trillion, or 2.48 percent of GDP. To keep deficits at a minimum, Prabowo will continue his budget austerity measures, further instructing ministries and government agencies to keep cutting non-essential spending, including business trips. The retired army general is even upbeat about being able to balance the state budget by 2028.

“My dream is that I shall stand at this podium -- perhaps in 2027 and 2028 -- to announce that we have succeeded in achieving no deficit,” Prabowo said.

Energy Spending and Production Targets

The 2026 plan allocates Rp 402.4 trillion for energy security, nearly double this year’s Rp 203.1 trillion, largely to fund energy subsidies. Prabowo stressed subsidies must be “fair and targeted” and not enjoyed by those who can afford to pay market rates.

Indonesia’s oil output target is set at 610,000 barrels of oil per day, up from 605,000 this year, as part of a broader push to strengthen energy sovereignty. The government will also boost natural gas production and expand renewable energy capacity, aiming for 100 percent renewable-based electricity within 10 years, far ahead of the nation’s formal 2060 net-zero commitment.

“We will accelerate our clean energy transition,” Prabowo said, citing solar, hydro, and geothermal power as key sources. Indonesia’s installed renewable capacity reached 15.2 GW, or 14.5 percent of national generation, as of mid-2025.

Nationwide Free Nutritious Meals Program

The 2026 budget dedicates a massive Rp 335 trillion to Prabowo’s flagship free nutritious meals program (MBG), which aims to combat stunting and improve human capital. The program will target 82.9 million beneficiaries, including pregnant women, toddlers, and schoolchildren, and will require the construction of nutrition service facilities across the archipelago.

Prabowo argued the initiative will boost not only public health but also local economies by supporting farmers, fishermen, and small businesses. “This is not merely a social program; it’s a foundation for a healthy, smart, and productive generation,” he said, claiming Indonesia has achieved in seven months what other countries, such as Brazil, took over a decade to accomplish.

Education and Human Capital

The education budget will total Rp 757.8 trillion in 2026, with Rp 401 trillion flowing directly to students and teachers. This includes Rp 17.2 trillion for college scholarships under the KIP Kuliah program, Rp 15.6 trillion for the Indonesia Smart Program, Rp 15 trillion in LPDP postgraduate scholarships, and the Rp 335 trillion MBG program. Another Rp 150.1 trillion will fund school and university construction, while Rp 178.7 trillion will go toward teacher and lecturer salaries.

Food Security Investments

Finance Minister Sri Mulyani Indrawati said Rp 164.4 trillion has been earmarked for food security, covering production, distribution, and consumption.

On the production side, Rp 114.1 trillion will fund fertilizer subsidies for 9.62 million tons, development of 550,000 hectares of farmland, irrigation for 104,000 hectares, and fishing and aquaculture facilities. Distribution spending includes Rp 29.9 trillion for farm roads, fishery port infrastructure, and national food reserves, while Rp 6.4 trillion will go to consumer subsidies, cheap food programs, and price stabilization.

Parliament will now deliberate on the proposal ahead of its expected passage later this year.

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