Martin Bagya Kertiyasa, Jakarta – The government has allocated Rp 2,567.9 trillion ($154.49 billion) for eight national priority programs in 2026, Chief Economic Affairs Minister Airlangga Hartarto said on Tuesday. The allocation is part of the 2026 State Budget, which totals Rp 3,842 trillion.

Airlangga said the programs aim to strengthen Indonesia's food, energy, and economic sovereignty as the country targets a more resilient and prosperous future.

The education sector receives the largest share at Rp 757.8 trillion, funding flagship schools, the Sekolah Rakyat initiative, and nationwide upgrades to learning facilities.

Energy security follows with Rp 402.4 trillion, covering Rp 16.7 trillion in tax incentives, Rp 37.5 trillion for renewable energy development, Rp 5 trillion for rural electrification, and about Rp 600 billion in supporting programs. The government will also raise oil and gas lifting targets, accelerate green energy adoption, and refine subsidy and compensation schemes.

The Free Nutritious Meal Program (MBG) secures Rp 335 trillion and is projected to reach 80 million beneficiaries by mid-2026, up from about 44 million schoolchildren currently served. Airlangga highlighted the program's large multiplier effect on local economies.

Food security receives Rp 164.4 trillion, including support for Bulog's rice procurement and farmer and fisher productivity. The government also allocates Rp 244 trillion for healthcare, and Rp 181.8 trillion for village development, cooperatives, and MSMEs.

Two additional priorities include Rp 424.8 trillion for total defense and Rp 57.7 trillion for investment acceleration and global trade expansion.

To ease the national housing backlog, the government will extend the VAT-borne-by-the-government (PPN DTP) scheme until 2027 and prepare Rp 130 trillion in housing-linked KUR financing.

Source: https://jakartaglobe.id/business/govt-sets-15449-b-for-2026-priority-program