Indonesia's Finance Minister discusses APBN and Danantara synergy

Finance Minister Suahasil Nazara emphasized the necessity of collaboration between the State Budget (APBN) and Danantara, the investment arm of the Republic of Indonesia, to support national development goals. Speaking at the Danantara Technology Innovation and Investment Forum, Nazara described the two entities as complementary tools for achieving Indonesia's vision.

Nazara noted that the APBN accounts for approximately 14–15 percent of Indonesia's GDP. She stressed that state spending must be directed toward sectors that provide the highest multiplier effect for the economy, while maintaining the three primary objectives of the APBN: fostering economic growth, ensuring stability, and upholding fiscal credibility.

In a separate meeting with Minister of Home Affairs Tito Karnavian, Nazara also discussed funding for post-disaster rehabilitation and reconstruction in Sumatra, planned for the 2026–2028 period. The discussions included addressing regions with low fiscal capacity and providing fiscal incentives to high-performing local governments to encourage competitive governance.