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2026 state budget passed: DPR approves $230 billion spending

Jakarta Globe - September 23, 2025

Alfi Dinilhaq, Jakarta – The House of Representatives (DPR) on Tuesday approved the 2026 state budget (APBN) in its fifth plenary session, marking the first budget under President Prabowo Subianto's administration.

The approval was led by House of Representatives Chairperson Puan Maharani after lawmakers voiced unanimous support.

The 2026 APBN sets state revenue at Rp 3,153.6 trillion ($189.7 billion) and state expenditure at Rp3,842.7 trillion ($230.7 billion), leaving a deficit of Rp689.1 trillion, or 2.68 percent of GDP. The government also targets a primary balance of Rp89.7 trillion.

House Budget Committee Chair Said Abdullah said the budget is designed as a fiscal tool to tackle global challenges while revitalizing national industries. "This APBN is positioned as a driver of recovery, supporting small and medium enterprises, logistics, transport, and tourism," he said.

Finance Minister Purbaya Yudhi Sadewa underscored that the budget reflects Prabowo's vision of food and energy sovereignty, while accelerating inclusive growth. "The 2026 APBN is crafted to boost economic activity, raise household purchasing power, and strengthen the real sector," he noted.

He added that fiscal policy priorities will focus on equitable welfare, stronger fundamentals, and stability. "Through this budget, the government seeks to accelerate growth, create jobs, and deliver more even distribution of prosperity," Purbaya mentioned.

Key Figures in 2026 APBN

  • Revenue: Rp3,153.6 trillion ($189.7 billion)
  • Tax: Rp2,357.7 trillion
  • Customs & excise: Rp336 trillion
  • Non-tax (PNBP): Rp459.2 trillion
  • Expenditure: Rp3,842.7 trillion ($230.7 billion)
  • Central government: Rp3,149.7 trillion
  • Ministries/agencies: Rp1,510.5 trillion
  • Non-ministerial institutions: Rp1,639.2 trillion
  • Transfers to regions: Rp693 trillion
  • Deficit: Rp689.1 trillion (2.68 percent of GDP)
  • Primary Balance: Rp89.7 trilli

Macroeconomic Assumptions

  • Growth: 5.4%
  • Inflation: 2.5%
  • Rupiah: Rp16,500 per US dollar
  • 10-year bond yield: 6.9%
  • Oil price: $70 per barrel
  • Oil lifting: 610,000 barrel per day
  • Gas lifting: 984,000 barrel per d

Welfare Targets

  • Unemployment: 4.44-4.96%
  • Poverty: 6.5-7.5%
  • Extreme poverty: 0-0.5%
  • Gini ratio: 0.377-0.380
  • GNI per capita: $5,520
  • Formal job creation: 37.95 million
  • Emissions reduction: 37.14%
  • Environmental quality index: 76.67

Source: https://jakartaglobe.id/business/2026-state-budget-passed-dpr-approves-230-billion-spendin