Sunday, September 21, 2025

Prabowo’s Plan: Eradicate State Budget Deficit Through Efficiency & Leakages Crackdown

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President Prabowo Subianto announced his commitment to steer Indonesia’s state budget (APBN) towards a zero-deficit position during his address on the 2026 State Budget Bill at the Parliament Complex in Senayan. The draft budget for 2026 sets state spending at Rp 3,786.5 trillion with projected revenue of Rp 3,147.7 trillion, aiming for a fiscal deficit of Rp 638.8 trillion, equivalent to 2.48% of GDP, to be financed through prudent means. Prabowo emphasized the need for courage and determination in eliminating budgetary leakages and called for support from all political forces in Indonesia.

The President pledged to continue efficiency measures to reduce the deficit, with the hope of achieving a state budget with no deficit in the future. He highlighted the importance of creative and innovative financing to reduce reliance on the APBN, emphasizing the flexibility of the budget to cushion global shocks. Prabowo also stressed the importance of boosting tax revenues and safeguarding the investment climate to support strategic economic activities.

In managing natural resources, the government aims to ensure maximum utilization for the people’s prosperity, emphasizing efficient and productive asset management to generate added value. The budget will focus on revenue optimization, improved spending quality, and financing innovation to maintain a healthy and credible budget. Through these efforts, the government aims to create a strong foundation for economic growth and development while eliminating budget deficits.

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