The surge in state spending at the beginning of 2026 is deemed to be\nproviding real impetus to the domestic economy. Amid rising government\nexpenditure, indicators of state revenues also show a positive trend,\nfostering optimism for future economic growth.<\/p>\n
Executive Director of NEXT Indonesia Center, Christiantoko, sees this\ncombination as an early signal of strengthening recovery.<\/p>\n
\u201cThe current developments provide positive signals. Government\nspending absorption is rising, state revenues are also growing strongly,\nthus the enthusiasm for economic activity offers good hope ahead,\u201d he\nstated in his comments on Tuesday (7\/4).<\/p>\n
Government data shows that state revenues in the first quarter of\n2026 reached Rp574.9 trillion, or a 10.5% year-on-year growth. This\nincrease was primarily supported by tax revenues that surged 20.7% to\nRp394.8 trillion.<\/p>\n
\u201cThis achievement provides healthier fiscal space to support the\nincreased spending,\u201d said Christiantoko.<\/p>\n
On the other hand, state spending also rose sharply. By the end of\nMarch, spending realisation reached Rp815.0 trillion, or up 31.4%\ncompared to the same period last year. The budget deficit was recorded\nat Rp240.1 trillion, equivalent to 0.93% of Gross Domestic Product\n(GDP).<\/p>\n
Although the deficit increased, Christiantoko assesses that the\nfigure remains within controlled limits and actually reflects a\ndeliberate fiscal strategy.<\/p>\n
\u201cIf examined holistically, the figure actually reflects a measured\nfiscal strategy,\u201d he said.<\/p>\n
According to him, the government is consciously pushing spending at\nthe start of the year to maintain growth momentum. The spending\nrealisation, which has reached 21.2% of the annual target, also\nindicates acceleration compared to previous years\u2019 patterns, which\naveraged around 17%.<\/p>\n
\u201cIncreased spending compared to the previous year shows an\nexpansionary effort that is indeed needed, especially at the beginning\nof the year, to maintain recovery momentum and strengthen the domestic\neconomy\u2019s driving force,\u201d explained Christiantoko.<\/p>\n
The increase in spending was triggered, among others, by strategic\nprogrammes and seasonal factors such as Eid, including a Rp15 trillion\nstimulus rolled out by the government to boost public consumption.<\/p>\n
\u201cHigher government spending becomes an important driver to maintain\npurchasing power and strengthen economic circulation,\u201d said\nChristiantoko.<\/p>\n
While aggressive on the spending side, the government is assessed to\nstill maintain fiscal discipline by keeping the deficit below the 3%\nthreshold of GDP.<\/p>\n
\u201cThus, the 0.93% deficit in the first quarter of 2026 should be seen\nas part of a measured fiscal policy strategy. As long as it is managed\ncarefully and remains within the established limits, this step has the\npotential to strengthen the foundation for future economic growth,\u201d he\nconcluded.<\/p>\n
The government is committed to not raising the price of subsidised\nfuel throughout 2026.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/state-spending-boosts-economic-optimism-1775613249", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }