Indonesia Finance Minister Purbaya projects 2026 budget deficit at 2.85% of GDP

Finance Minister Purbaya Yudhi Sadewa projected Indonesia's 2026 fiscal deficit at 2.85% of GDP, equivalent to about Rp734.3 trillion. In the first half of the year the deficit stood at 0.76% of GDP (Rp196.5 trillion), well below the 3% legal ceiling.

State revenue grew 21.4% year‑on‑year, reaching Rp1.459,4 trillion (46.3% of the APBN target). Tax collection rebounded sharply, up 24.6% to Rp1.035,7 trillion in the first semester, driven mainly by corporate income tax. Total revenue is expected to hit Rp3.208,1 trillion, or 101.7% of the 2026 target.

Government spending is projected at Rp3.942,4 trillion (102.6% of the budget ceiling). Transfer to regions (TKD) was raised to Rp706,3 trillion, and additional allocations will support disaster response, special autonomy funds for Papua, and infrastructure. Salaries for PPPK teachers and health workers will be financed from the budget.

Separately, thousands of workers staged a protest outside the Finance Ministry demanding the abolition of tax on JHT pension payouts and other social‑security related levies.