Amid US-Iran tensions, Finance Minister says no 2026 budget revision planned

Jakarta — Finance Minister Purbaya Yudhi Sadewa has stated that the government does not currently plan to revise the 2026 national budget despite the global economy being marked by uncertainty resulting from US-Iran tensions.

According to him, the government has not identified an urgent need to overhaul the budget as fiscal conditions are considered sufficiently strong, supported by improving state revenue performance.

“There have been many media inquiries asking whether the government will quickly amend the budget. The answer is no. On the revenue side, conditions remain quite favourable,” Purbaya said at a press conference on the March 2026 edition of “APBN KITA” (Our National Budget) in Jakarta on Wednesday.

He explained that the 2026 budget was intentionally designed with a deficit position to provide space for the government to stimulate economic activity. Additionally, the government is working to accelerate budget expenditure absorption from the start of the year so that benefits to society and the business sector can be felt more quickly.

“Should conditions become more pressing in future, we will certainly adjust the budget. However, at present we are starting from a position of strong fiscal health,” he said.

He also urged the public not to worry about the government’s fiscal condition, as budget management continues to be directed at maintaining economic stability whilst protecting purchasing power.

As of the end of February 2026, the budget recorded a deficit of Rp135.7 trillion, equivalent to 0.53 per cent of gross domestic product (GDP). This figure remains within the parameters of the 2026 budget design, which targets a deficit of Rp698.15 trillion, or approximately 2.68 per cent of GDP.