Business · Economy · 2 hrs ago
Indonesia Plans More Spending While Targeting a 2.85% Budget Deficit
At a meeting in Jakarta on October 19, 2026, Indonesia’s economic officials told the president the economy remains resilient despite global uncertainty.
Finance Minister Suahasil Nazara said the government would keep public spending growing for the rest of the year to support economic activity and consumption.
He said the budget deficit is expected to stay near 2.85% of GDP.
Bank Indonesia Governor Destry Damayanti said core inflation was 2.8% in September, while food inflation had reached 5% and needs attention.
She said the central bank would continue efforts to steady the rupiah, including interventions in currency markets.
Financial Services Authority chief Friderica Widyasari Dewi said market reforms will focus on transparency, liquidity and enforcement against coordinated trading and other violations.
The officials said these efforts are intended to support growth, protect purchasing power and make Indonesia’s capital market more attractive to investors.
Indonesia’s government plans to keep state spending higher than in the fourth quarter of the previous year while keeping the budget deficit at about 2.85% of gross domestic product.
Finance Minister Suahasil Nazara said the spending is intended to support economic activity, public services and consumption.
He said Indonesia’s economy remained resilient amid global instability.
Bank Indonesia Governor Destry Damayanti reported that core inflation was 2.8% in September, while food inflation had reached 5%.
The comments followed a coordination meeting with President Prabowo Subianto and economic officials in Jakarta on 19 October 2026.
- Who
- Finance Minister Suahasil Nazara and other economic officials, including Bank Indonesia Governor Destry Damayanti, reported to the president.
- What
- The government plans to increase spending while keeping the budget deficit at about 2.85% of GDP.
- When
- The officials met on 19 October 2026. The spending outlook covers the remainder of the year.
- Where
- The meeting was at the presidential palace in Jakarta.
- Why
- The government says higher spending will support economic activity and consumption while maintaining stability.
This story does not have two clearly opposing sides.
Core inflation was 2.8%, while food inflation had reached 5%, according to Bank Indonesia Governor Destry Damayanti.
Suahasil Nazara and other economic officials reported to the president at a coordination meeting in Jakarta.
The government plans to keep state spending higher than in the fourth quarter of the previous year and maintain the deficit at about 2.85% of GDP.
- Budget deficit outlook
- About 2.85% of GDP
- Core inflation
- 2.8% in September
- Food inflation
- 5%
- Meeting date
- 19 October 2026
- Meeting location
- Presidential palace, Jakarta
What people are saying
We reported to the president that macroeconomic conditions remain resilient, transaction conditions remain very resilient, so we will maintain stability and encourage growth.
That is the outlook we are maintaining and our working agenda until the end of the year.
Core inflation shows the economy is still fairly controlled; in September it was 2.8%.
Food inflation needs special attention from the government because it has reached 5%.