President Prabowo Subianto has announced his commitment to lead Indonesia’s state budget towards a zero-deficit position, as he presented the 2026 State Budget Bill at the Parliament Complex in Senayan. The draft budget outlines state spending at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion, aiming for a fiscal deficit of Rp 638.8 trillion, equivalent to 2.48% of GDP. Prabowo expressed his determination to implement efficiency measures to reduce the deficit and aspire to achieve a deficit-free state budget in the future.
He emphasized the importance of addressing budgetary leakages and called for the support of all political forces in Indonesia to tackle this issue. The government plans to explore creative and innovative financing mechanisms to reduce reliance on the state budget for development funding. Prabowo highlighted the necessity of maintaining a flexible budget to cushion global shocks, optimize revenue, enhance spending quality, and promote financing innovation.
Efforts will be made to enhance tax revenues while ensuring a conducive investment climate and business sustainability. Fiscal incentives will be strategically tailored to support key economic activities. Prabowo also emphasized the efficient and productive management of natural resources to maximize their benefits for the people’s prosperity. It is crucial for every state asset to generate added value and contribute positively to the welfare of the people.
