Archive · 18 Sep 2025
Indonesia Parliament Approves Larger 2026 Budget
Imagine Indonesia is like a country running its finances.
The government has a budget, a plan for how much it will spend.
Parliament recently agreed to a bigger spending plan for next year than the President initially wanted.
This means more money will be spent on things like programs and defense.
Although spending is increasing, the government aims to keep its debt under control.
The government wants to boost the economy and help the country grow, so they are allowing the deficit to increase to drive economic growth.
They have goals to increase non-tax revenues and hope that they can do so with this budget in place.
The government also aims to keep regional leaders happy by not cutting their funding too much.
Parliament approved a larger 2026 budget with increased spending.
The total spending plan is 3,842.7 trillion rupiah ($233 billion).
The fiscal deficit forecast is 2.68% of GDP.
Budget allocation for regional governments has increased to 693 trillion rupiah.
The budget aims for economic growth with a 5.4% GDP target in 2026.
- Who
- Indonesia's Parliament and President Prabowo Subianto
- What
- Approved a larger spending plan and wider fiscal deficit for the 2026 budget.
- When
- Thursday, expected full vote on September 23
- Where
- Indonesia
- Why
- To fund growth, with a target of 5.4% GDP growth in 2026.
- 2026 Budget Spending Plan
- 3,842.7 trillion rupiah ($233 billion)
- 2026 Fiscal Deficit Forecast
- 2.68% of GDP
- 2025 Estimated Total Spending
- Approximately 9% lower than 2026
- Regional Government Allocation
- 693 trillion rupiah
- Free Meals Program Allocation
- 335 trillion rupiah
- Defense Spending
- 335.3 trillion rupiah (original proposal)