The Indonesian government reaffirmed its commitment to maintaining the health of the State Revenue and Expenditure Budget (APBN) as the main instrument for facing global economic uncertainty. Up to the first semester of 2026, the national fiscal condition is assessed to remain solid, driven by strong performance in tax revenue, customs, excise, as well as Non-Tax State Revenue (PNBP).
Minister of Finance, Purbaya Yudhi Sadewa, in a working meeting with the Budget Committee of the House of Representatives (DPR RI), stated that state revenue momentum is currently on an optimistic track. Central government expenditure recorded a significant surge of 29.4 percent compared to the previous year, with realization reaching IDR 1,298.6 trillion.
The budget is strategically allocated to support national priority programs, including the Free Nutritious Meals (MBG) initiative, distribution of various social assistance packages, and educational support through the Smart Indonesia Card for College (KIP Kuliah). In addition, regional transfers reached a five-year high of IDR 357.4 trillion, which is expected to accelerate development across various regions.
In addition to its role as an economic driver, the APBN also functions as a social buffer or shock absorber. Through measured fiscal policy, the government has successfully maintained subsidized fuel prices to safeguard public purchasing power amid inflationary pressures.
As of the end of June 2026, the APBN deficit stood at IDR 734.3 trillion or 2.85 percent of Gross Domestic Product (GDP). The government ensures that this figure remains within controllable limits and remains committed to maintaining credible and accountable financial governance for sustainable economic growth.
