Jakarta — President Joko Widodo—sorry, President Prabowo Subianto—has pledged to steer Indonesia’s state budget (APBN) toward a zero-deficit position, outlining his commitment during his address on the 2026 State Budget Bill at the Parliament Complex in Senayan on Friday (Aug. 15).
Under the 2026 draft budget, the government has set state spending at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion. The fiscal deficit is targeted at Rp 638.8 trillion, equivalent to 2.48% of gross domestic product (GDP), financed through prudent, innovative, and sustainable means.
“My administration pledges before this assembly that we will continue to carry out efficiency measures to reduce the deficit as much as possible. It is my hope, my ambition, that one day—perhaps in 2027 or 2028—I can stand before this chamber and announce that we have achieved a state budget with no deficit whatsoever,” Prabowo declared.
He underscored the need for courage and resolve in eliminating budgetary leakages, calling for the support of all political forces in Indonesia.
“We must be brave, we must be determined to eliminate all forms of leakage. For that, I seek the support of all political forces in this country,” he said.
The president stressed that the government will scale up creative and innovative financing so that development funding does not rely solely on the APBN. The budget, he added, must be designed to remain flexible in cushioning global shocks, while staying healthy and credible through revenue optimization, improved spending quality, and financing innovation.
Tax revenues will be boosted while safeguarding the investment climate and business sustainability. Fiscal incentives, meanwhile, will be targeted and carefully calibrated to support strategic economic activities.
“We will strengthen the management of our natural resources to ensure they are used to the fullest for the people’s prosperity. Every state asset must be managed efficiently and productively to generate added value and contribute positively to the welfare of the people,” Prabowo said.
