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18.09.202506:49:17UTC+00Indonesia Plans to Raise Budget Deficit to 2.68% in FY 2026

Indonesia's parliamentary budget committee has given the green light to a revised fiscal deficit projection for the 2026 government budget, setting it at 2.68% of GDP, up from the original 2.48% proposed by President Prabowo Subianto in August. Committee Chairperson Said Abdullah announced that total government spending has been set at IDR 3,842.7 trillion (approximately USD 233 billion), marking an increase of IDR 56.2 trillion over the initial plan. The target for government revenue remains steady at IDR 3,153.6 trillion. Consequently, the budget financing requirement has been adjusted upwards from IDR 638.8 trillion to IDR 689.1 trillion to account for the heightened expenditure. It is anticipated that this decision by the budget committee will be formally approved in a forthcoming parliamentary session.

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