President Prabowo Subianto has made a commitment to guide Indonesia’s state budget towards a zero-deficit position in his speech on the 2026 State Budget Bill. The draft budget sets state spending at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion and a targeted fiscal deficit of Rp 638.8 trillion, equivalent to 2.48% of GDP. 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 the courage to eliminate budgetary leakages and urged the support of all political forces in the country.
Furthermore, the government plans to enhance creative and innovative financing to reduce reliance on the state budget for development funding. Prabowo highlighted the need for a flexible budget that can withstand global shocks, optimize revenue, improve spending quality, and promote financing innovation. Tax revenues will be increased while ensuring a favorable investment climate and sustainable business practices. Fiscal incentives will be strategically targeted to support key economic activities.
In addition, Prabowo emphasized the importance of managing natural resources efficiently to enhance the people’s prosperity. State assets are to be utilized effectively to generate added value and contribute positively to the welfare of the citizens. The government aims to strengthen revenue optimization, spending quality, and financing innovation to maintain a healthy and credible budget. Through these initiatives, Prabowo envisions a state budget that not only eliminates deficits but also supports sustainable economic growth and prosperity for the Indonesian people.
