President Prabowo Subianto has laid out his vision to lead Indonesia towards achieving a zero-deficit state budget in his address on the 2026 State Budget Bill at the Parliament Complex in Senayan. The proposed 2026 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 emphasized the importance of efficiency measures to minimize the deficit. He expressed his ambition to announce a budget with no deficit in the future and called for the courage and determination to eliminate budgetary leakages with the support of all political forces in Indonesia.
The government aims to enhance creative and innovative financing to reduce reliance on the state budget for development funding. Prabowo highlighted the necessity for a flexible budget to cushion global shocks and ensure credibility through revenue optimization, improved spending quality, and financing innovation.
Efforts will be made to increase tax revenues while maintaining a favorable investment climate and sustainable businesses. Fiscal incentives will be tailored to support strategic economic activities effectively. Prabowo also emphasized the importance of managing natural resources efficiently to benefit the people’s prosperity by generating added value and contributing positively to their welfare.
