Ilona Estherina, Jakarta – The Indonesian House of Representatives (DPR) Budget Committee has approved an increase to the 2026 state budget deficit, raising it from Rp638.8 trillion to Rp689.1 trillion.

"The percentage of the deficit against GDP, which was originally 2.48 percent, has now become 2.68 percent. There is an increase of 0.2 percent," stated Said Abdullah, Chair of the DPR Budget Committee, during a meeting in Senayan, Jakarta, on Thursday, September 18, 2025.

In addition to revising the deficit target, the meeting on the initial draft of the 2026 State Budget also adjusted other key financial metrics, including expenditure and debt financing. State expenditure has grown by Rp56.2 trillion, from an initial Rp3,786.5 trillion to Rp3,842.7 trillion.

Furthermore, the General Allocation Fund (DAU) has been raised from Rp650 trillion to Rp693 trillion. Simultaneously, state revenue saw a Rp5.9 trillion increase, from Rp3,147.7 trillion to Rp3,153.6 trillion.

Accordingly, budget financing has also expanded to Rp689.1 trillion, a significant jump from the initial Rp638.8 trillion.

During the session, all factions within the DPR unanimously agreed to approve the revised 2026 State Budget. This new budget structure will advance to a second-level decision-making process for a plenary meeting, where it will be enacted into law.

Source: https://en.tempo.co/read/2050010/indonesias-parliament-approves-higher-2026-state-budget-defici