the Indonesian government and the House of Representatives Budget Committee (Banggar DPR RI) officially agreed on the proposed structure of the 2026 State Budget (APBN) (18/9).

The meeting took place at the DPR RI’s plenary room in Jakarta. According to the agreement, state spending is set at IDR 3,842.7 trillion, while state revenue is projected at IDR 3,153.6 trillion, resulting in a budget deficit of IDR 689.1 trillion, equivalent to 2.68% of GDP.

Minister of Finance Purbaya Yudhi Sadewa expressed gratitude for the collaboration.

"With the completion of the APBN 2026 discussions by the House Budget Committee, allow us, on behalf of the Government, to express our highest appreciation to the leadership and members of Banggar DPR RI, Ministries/Agencies, government representatives, and the leadership of Bank Indonesia. This cooperation reflects our joint commitment to uphold the APBN as a fiscal tool to improve public welfare,” he said.

State Spending Set at IDR 3,842.7 Trillion Amid Deficit Strategy

The total state expenditure for 2026 is designed to reach IDR 3,842.7 trillion. This includes central government spending of IDR 3,149.7 trillion and regional transfers amounting to IDR 693.0 trillion.

Spending by the central government will be divided into:

• IDR 1,510.5 trillion for ministries and institutions, and
• IDR 1,639.2 trillion for non-ministerial entities.

This allocation strategy reflects the government’s continued focus on national development and regional empowerment.

Revenue Targets Driven by Tax and Non-Tax Contributions

From the revenue side, Indonesia aims to collect IDR 2,693.7 trillion from taxation. This breaks down into:

• IDR 2,357.7 trillion from taxes, and
• IDR 336.0 trillion from customs and excise.

In addition, Non-Tax State Revenue (PNBP) is projected at IDR 459.2 trillion, indicating a diversified fiscal approach beyond taxation.

Primary Balance and Budget Deficit Financing Plan Revealed

With this budget structure, the primary balance shows a deficit of IDR 89.7 trillion.

To address the broader fiscal gap, the government has planned budget financing of IDR 689.1 trillion, matching the estimated deficit. This financing plan will be crucial for maintaining economic stability and supporting ongoing national programs.

Next Steps: Budget to Be Ratified in September 23 Plenary Session

Following this agreement between the Government and Banggar DPR RI, the 2026 State Budget proposal will be presented at the DPR RI Plenary Session on September 23, 2025, for final approval.

This marks a critical step in Indonesia’s annual fiscal planning and ensures continued alignment between policy direction and financial execution.

PHOTO: KEMENKEU/ZALFA DHIAULHAQ

This article was created with AI assistance.