President Prabowo Subianto has laid out his commitment to lead Indonesia’s state budget (APBN) towards a zero-deficit position during his speech on the 2026 State Budget Bill at the Parliament Complex in Senayan. The 2026 draft budget includes state spending of Rp 3,786.5 trillion and projected revenue of Rp 3,147.7 trillion, with a targeted fiscal deficit of Rp 638.8 trillion, equivalent to 2.48% of GDP. Prabowo expressed his dedication to implementing efficiency measures to minimize the deficit and aspires to announce a deficit-free state budget in the future, possibly by 2027 or 2028. He emphasized the importance of courage and determination in eliminating budget leakages and called for the support of all political forces in Indonesia.
Furthermore, Prabowo highlighted the government’s plans to enhance creative and innovative financing to reduce reliance on the APBN for development funding. The budget strategy aims to adapt to global shocks by staying flexible, maintaining revenue optimization, improving spending quality, and innovating in financing. There will be an emphasis on boosting tax revenues, ensuring a favorable investment climate, and crafting targeted fiscal incentives to support key economic activities. Prabowo also emphasized the efficient and productive management of natural resources to bolster the people’s prosperity and generate value from state assets. overall, the government’s goal is to ensure a healthy and credible budget through strategic financial management practices.
Prabowo’s Efforts to Eliminate State Budget Deficit and Increase Efficiency
