President Joko Widodo, or rather, President Prabowo Subianto, has made a commitment to lead Indonesia’s state budget (APBN) towards a zero-deficit position. This commitment was outlined during the address of the 2026 State Budget Bill at the Parliament Complex in Senayan. In the proposed 2026 budget, state spending is set at Rp 3,786.5 trillion, with projected revenue of Rp 3,147.7 trillion. The targeted fiscal deficit is Rp 638.8 trillion, equivalent to 2.48% of the GDP. President Prabowo expressed his administration’s dedication to implementing efficiency measures to minimize the deficit. He aims to achieve a state budget with no deficit in the future, possibly by 2027 or 2028. Prabowo emphasized the importance of courage and determination in eliminating budgetary leakages, urging the support of all political forces in Indonesia for this endeavor. The government will focus on creative and innovative financing to reduce reliance on the APBN for development funding. There will be efforts to boost tax revenues, protect the investment climate, and ensure business sustainability. Fiscal incentives will be carefully directed to support strategic economic activities. Additionally, the management of natural resources will be strengthened to increase prosperity for the people. State assets will be managed efficiently to generate added value and contribute to the welfare of the population.
Prabowo’s Plan to Eliminate State Budget Deficit Through Efficiency Measures
