President Prabowo Subianto has announced his commitment to lead Indonesia’s state budget towards achieving a zero-deficit position during his speech on the 2026 State Budget Bill at the Parliament Complex in Senayan on Friday. The draft budget for 2026 sets 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, equivalent to 2.48% of GDP. President Prabowo expressed his administration’s dedication to implementing efficiency measures to reduce the deficit and aims to achieve a balanced state budget in the future. He emphasized the importance of eliminating budgetary leakages and called for the support of all political forces in Indonesia.
Furthermore, President Prabowo highlighted the need for creative and innovative financing to reduce reliance on the state budget for development funding. He emphasized the importance of maintaining a flexible budget to withstand global economic shocks while optimizing revenue, enhancing spending quality, and promoting financing innovation. The government will focus on boosting tax revenues, improving the investment climate, and providing targeted fiscal incentives to support strategic economic activities.
Moreover, President Prabowo emphasized the efficient and productive management of natural resources to benefit the people’s prosperity. He underlined the necessity of maximizing the value of state assets to contribute positively to the welfare of the population. The government’s goal is to enhance revenue generation and promote economic growth while ensuring sustainable resource management.
