President Prabowo Subianto has laid out his commitment to lead Indonesia’s state budget (APBN) towards achieving a zero-deficit position in his address on the 2026 State Budget Bill. The government’s draft budget for 2026 includes state spending set at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion. The fiscal deficit is targeted at Rp 638.8 trillion, equivalent to 2.48% of gross domestic product (GDP), and will be financed through prudent and innovative means.
Prabowo expressed his administration’s dedication to implementing efficiency measures to reduce the deficit as much as possible. He aspired to announce in the future, possibly by 2027 or 2028, that the state budget has achieved a deficit-free status. The president emphasized the importance of eliminating budgetary leakages with courage and determination, urging the support of all political forces in Indonesia.
In order to reduce reliance on the APBN for development funding, the government will prioritize creative and innovative financing. Prabowo highlighted the necessity for a flexible budget that can withstand global shocks while remaining credible through revenue optimization, improved spending quality, and financing innovation. The administration plans to boost tax revenues, enhance the investment climate, and provide targeted fiscal incentives to support strategic economic activities.
Furthermore, President Prabowo emphasized the efficient and productive management of natural resources to enhance the people’s prosperity. State assets will be managed to generate added value and positively contribute to the welfare of the population. The government’s commitment to eliminating the state budget deficit and promoting efficiency in financial management underscores its dedication to ensuring a stable and prosperous economic future for Indonesia.
