Indonesia Approves 2026 Budget with Fiscal Deficit at 2.68% of GDP

Indonesia’s parliament on Tuesday approved President Prabowo Subianto’s proposed budget for 2026, setting the fiscal deficit at 2.68% of GDP.

The budget, which the parliament speaker put to a vote, assumes economic growth of 5.4%, up from the 2025 target of 5.2%.

The budget targets revenues of IDR 3,153.6 trillion and spending of IDR 3,842.7 trillion (USD 231.5 billion).

Proposed spending for 2026 is 9% higher than the estimated total spending for 2025, while the revenue target is about 10% higher than the 2025 outlook.

The 2026 deficit is projected to be lower than this year’s forecast of 2.78% of GDP and remains below the 3% limit set by law.