Akmalal Hamdhi, Jakarta – Indonesia's 2026 state budget plan has undergone significant revisions less than two weeks after the appointment of Finance Minister Purbaya Yudhi Sadewa, marking one of his first major policy shifts.
On Thursday, the House of Representatives' Budget Committee, Bank Indonesia Governor Perry Warjiyo, and Purbaya agreed on adjustments that raise both spending and revenue targets while widening the projected fiscal deficit.
Key changes include:
State expenditure
- Total state spending was revised upward from Rp 3,786.49 trillion ($228.5 billion) to Rp 3,842.72 trillion ($231.9 billion).
- Central government spending will rise slightly to Rp 3,149.7 trillion from Rp 3,136.5 trillion.
- Transfers to regional governments will increase more sharply, from Rp 649.99 trillion to Rp 692.99 trillion.
State revenue
- Revenue targets were lifted from Rp 3,147.7 trillion ($190 billion) to Rp 3,153.6 trillion ($190.4 billion).
- Tax revenue is set at Rp 2,693.7 trillion, up slightly from Rp 2,692.0 trillion.
- Non-tax revenue was raised to Rp 459.2 trillion, compared with Rp 455 trillion previously.
- Grant revenue remains unchanged at Rp 663 billion.
Budget deficit
- The projected deficit widened from Rp 638.8 trillion ($38.6 billion), or 2.48 percent of GDP, to Rp 689.1 trillion ($41.6 billion), equivalent to 2.68 percent of GDP.
The revisions mark the first budgetary recalibration under Purbaya, who replaced long-serving Finance Minister Sri Mulyani Indrawati earlier this month. The adjustments reflect both higher government spending commitments and modestly stronger revenue expectations, while acknowledging a slightly looser fiscal stance heading into 2026.