Indonesia’s government and parliament have officially approved revisions to the 2026 draft state budget (RAPBN), reflecting a strategic recalibration of fiscal priorities. The updated framework increases both revenue and expenditure targets, with a notable boost in regional transfers and public sector spending. As global uncertainties persist, the revised budget aims to balance growth ambitions with fiscal discipline.
Key Facts & Background:
- The revised RAPBN 2026 was approved in a joint session between the Budget Committee (Banggar) of DPR RI and the government.
- Key participants included Finance Minister Purbaya Yudhi Sadewa, Bank Indonesia Governor Perry Warjiyo, and Bappenas representatives.
- State Revenue Target:
- Revised to Rp3,153.6 trillion (up Rp5.9 trillion from Rp3,147.7 trillion)
- Tax revenue remains unchanged at Rp2,357.7 trillion
- Customs and excise revised to Rp336 trillion (up Rp1.7 trillion)
- Non-tax state revenue (PNBP) revised to Rp459.2 trillion (up Rp4.2 trillion)
- State Expenditure Target:
- Revised to Rp3,842.7 trillion (up Rp56.2 trillion from Rp3,786.5 trillion)
- Central government spending revised to Rp3,149.7 trillion
- Ministry/agency spending: Rp1,510.5 trillion
- Non-ministry spending: Rp1,639.2 trillion
- Regional transfers revised to Rp693 trillion (up Rp43 trillion)
- Fiscal Deficit:
- Revised to Rp689.1 trillion or 2.68% of GDP (up from 2.48%)
- Primary Balance:
- Revised to a deficit of Rp89.7 trillion (up Rp50.3 trillion from Rp39.4 trillion)
- Budget Financing:
- Revised to Rp689.1 trillion (up Rp50.3 trillion)
Strategic Insights:
The revision of Indonesia’s 2026 budget framework reflects a proactive approach to fiscal management amid evolving economic challenges. The increased allocation for regional transfers signals a commitment to decentralization and equitable development, empowering local governments to address infrastructure, education, and healthcare needs more effectively. This move aligns with Indonesia’s long-term goal of reducing regional disparities and fostering inclusive growth.
The unchanged tax revenue target suggests cautious optimism about collection efficiency, while the upward revision in customs and non-tax revenues indicates stronger expectations from trade and state-owned assets. However, the widening fiscal deficit and primary balance highlight the need for prudent debt management and targeted spending. At 2.68% of GDP, the deficit remains within acceptable limits, but rising financing needs underscore the importance of maintaining investor confidence and macroeconomic stability.
The increase in central government spending, particularly in ministry and non-ministry allocations, reflects Indonesia’s strategic focus on public service delivery and national priority programs. As the country navigates post-pandemic recovery, digital transformation, and infrastructure expansion, these investments are critical to sustaining momentum and enhancing competitiveness.
Looking ahead, the success of the revised RAPBN 2026 will depend on execution quality, revenue mobilization, and adaptive policy responses. The government must ensure that increased spending translates into tangible outcomes, while safeguarding fiscal sustainability. For stakeholders—from policymakers to investors—the revised budget offers a roadmap for Indonesia’s economic direction, balancing ambition with accountability in an increasingly complex global landscape.