President Prabowo Subianto has announced his commitment to steering Indonesia’s state budget (APBN) towards a zero-deficit position during his 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 and a targeted fiscal deficit of Rp 638.8 trillion, equivalent to 2.48% of GDP.
Prabowo emphasized the importance of efficiency measures to reduce the deficit and expressed his ambition to achieve a state budget with no deficit in the future. He called for courage and determination in eliminating budgetary leakages, seeking the support of all political forces in Indonesia.
The government plans to scale up creative and innovative financing to reduce reliance on the APBN for development funding. Prabowo highlighted the need for a flexible budget that can withstand global shocks, focusing on revenue optimization, improved spending quality, and financing innovation.
Efforts will be made to boost tax revenues while preserving the investment climate and supporting business sustainability. Fiscal incentives will be strategically targeted to bolster key economic activities. Prabowo also stressed the importance of efficient management of natural resources to enhance the people’s prosperity.
With a strong emphasis on efficiency, transparency, and innovation, Prabowo aims to ensure that every state asset is managed productively to generate added value and contribute positively to the welfare of the people.
