President Joko Widodo, also known as President Prabowo Subianto, has made a commitment to lead Indonesia’s state budget towards a zero-deficit position. This pledge was announced during the address on the 2026 State Budget Bill at the Parliament Complex in Senayan. The 2026 draft budget sets 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. President Prabowo expressed his ambition to achieve a state budget with no deficit in the future through efficiency measures and innovative financing.
He emphasized the importance of courage in eliminating budget leakages and called for the support of all political forces in Indonesia. The government plans to enhance creative and innovative financing to reduce reliance on the state budget, designed to withstand global shocks. Revenue optimization, improved spending quality, and financing innovation are key elements in maintaining a healthy and credible budget.
Efforts will be made to boost tax revenues while protecting the investment climate and ensuring business sustainability. Fiscal incentives will be strategically targeted to support economic activities. President Prabowo highlighted the need to manage natural resources efficiently for the people’s prosperity, aiming to generate added value and contribute to the welfare of the population.
