Indonesian Political, Business & Finance News

Airlangga confirms second-half stimulus will not affect 2026 state budget deficit

| Source: ANTARA_ID Translated from Indonesian | Economy
Airlangga confirms second-half stimulus will not affect 2026 state budget deficit
Image: ANTARA_ID

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that additional expenditure for the second-half 2026 stimulus package will not affect the 2026 state budget (APBN) deficit. “(The fiscal deficit) is safe,” Airlangga said during an interview at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday (22/6). The government is disbursing a second-half economic stimulus with a total budget of Rp26.34 trillion to maintain public purchasing power and drive economic growth. The budget consists of transport sector incentives worth Rp2.04 trillion, internship and vocational programmes amounting to Rp6.26 trillion, and food assistance valued at Rp18.04 trillion. Coordinating Minister Airlangga also confirmed there have been no changes or adjustments to the 2026 fiscal posture following the launch of the stimulus package. The government has set a 2026 APBN deficit target of 2.68 percent of gross domestic product (GDP), equivalent to Rp689.1 trillion. However, amid rising global oil prices and a weakening rupiah exchange rate, Finance Minister Purbaya Yudhi Sadewa estimates the deficit could widen to around 2.90 percent of GDP. As of May 2026, the APBN deficit was recorded at Rp180.4 trillion, or 0.70 percent of GDP. Overall, state revenue reached Rp1,185 trillion, equivalent to 37.6 percent of the APBN target of Rp3,153.6 trillion, representing growth of 19.1 percent year-on-year. On the expenditure side, realisation as of May 2026 reached Rp1,365.4 trillion, or 35.5 percent of the APBN target of Rp3,842.7 trillion, growing 34.4 percent year-on-year.

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