Constitutional Court strengthens DPR oversight of Indonesia's 2026 state budget

The Constitutional Court of Indonesia has issued a ruling that strengthens the oversight role of the House of Representatives (DPR) regarding the 2026 State Budget (APBN). The court ruled that changes to the central government's functional spending cannot be made solely through Presidential Regulations if they impact the total expenditure amount; such changes now require DPR approval.

Key aspects of the ruling include protections for village incentive funds, which cannot be unilaterally diverted to other government priorities, such as the Free Nutritious Meal (MBG) program. Additionally, the court mandated that any budget policies potentially threatening national economic stability must receive parliamentary consent.

Regarding education, the court specified that the MBG program budget must be separated from operational education budgets by the 2028 budget year at the latest. The ruling ensures that MBG funds cannot be used to fulfill the mandatory 20 percent national education budget allocation. Members of the Regional Representative Council (DPD) noted that this separation is necessary to ensure education funds are used effectively for school infrastructure, teacher salaries, and regional needs.