Giffar Rivana, Jakarta – Finance Minister Sri Mulyani Indrawati has indicated that Indonesia's 2026 state budget (APBN) will follow the efficiency measures implemented in 2025, with significant spending cuts across ministries and government agencies.

The 2025 budget has been trimmed by Rp 306.69 trillion ($18.9 billion), including a Rp 256.1 trillion reduction in ministry and agency budgets and Rp 50.59 trillion in regional transfers. According to Sri Mulyani, this efficiency framework will serve as a baseline for future budgeting.

"The results of the 2025 budget will be used as a reference for structuring the 2026 budget," she said in Jakarta on Friday.

While discussions on the 2026 budget are still in the early stages, Sri Mulyani assured that public services and social spending will not be compromised.

"Although discussions are still limited in scope, public services remain a priority. The reductions will not affect social spending, particularly social assistance programs, which have been explicitly protected," she added.

The Social Protection Program budget stands at Rp 78.42 trillion, covering the Family Hope Program (PKH) and Non-Cash Food Assistance (BPNT).

The Ministry of Finance will conduct a comprehensive review of all ministries and agencies to ensure compliance with efficiency measures while maintaining constitutional obligations.

"After gathering input from all ministries and agencies, we will further refine the budget to ensure that efficiency measures align with legal and constitutional requirements," Sri Mulyani concluded.

Source: https://jakartaglobe.id/business/sri-mulyani-2026-state-budget-to-follow-2025-austerity-measure