President Prabowo Subianto has made a bold commitment to steer Indonesia’s state budget (APBN) toward a zero-deficit position during his address on the 2026 State Budget Bill. The draft budget for 2026 sets state spending at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion. Prabowo aims to reduce the fiscal deficit to Rp 638.8 trillion, equivalent to 2.48% of GDP, through prudent and sustainable means.
In his speech, Prabowo emphasized the importance of efficiency measures to minimize the deficit, expressing his hope to announce a deficit-free state budget in the future. He called for courage and determination in eliminating budgetary leakages and sought the support of all political forces in Indonesia for this endeavor.
The government plans to enhance creative and innovative financing to reduce reliance on the APBN for development funding. Prabowo stressed the need for flexibility in the budget to withstand global shocks while maintaining revenue optimization, improved spending quality, and financing innovation.
Efforts will be made to boost tax revenues, safeguard the investment climate, and provide fiscal incentives to support strategic economic activities. Prabowo highlighted the importance of effectively managing natural resources for the people’s prosperity and maximizing the value of state assets to benefit the welfare of the people.
Overall, Prabowo’s vision for the state budget focuses on efficiency, cracking down on leakages, and promoting sustainable financial practices to ensure a healthy and credible budget for Indonesia’s future.
