President Prabowo Subianto has made a commitment to lead Indonesia’s state budget towards a zero-deficit position during his address on the 2026 State Budget Bill. The government aims to set state spending at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion, targeting a fiscal deficit of Rp 638.8 trillion. Prabowo emphasized the importance of efficiency measures to reduce the deficit and expressed his ambition to achieve a deficit-free state budget in the future.
He called for courage and determination in eliminating budgetary leakages, seeking support from all political forces in Indonesia. Prabowo also highlighted the need for creative and innovative financing to diversify development funding sources beyond the state budget. The government plans to boost tax revenues, enhance the investment climate, and provide targeted fiscal incentives to support strategic economic activities.
Furthermore, Prabowo emphasized the efficient and productive management of natural resources to generate added value and contribute to the welfare of the people. The state assets should be utilized effectively to ensure prosperity for all citizens. Overall, the president’s goal is to maintain a flexible and credible budget that can withstand global shocks through revenue optimization, improved spending quality, and financing innovation.
