Budget Deficit Maintained, Government Relies on Efficiency and Boosting Revenue

Coordinating Minister for the Economy Airlangga Hartarto has emphasised that the government will not alter the state budget (APBN) deficit limit, even as global oil prices rise due to geopolitical tensions in the Middle East. The government targets keeping the deficit below 3% of gross domestic product (GDP). Airlangga stated that the government will maintain the deficit through operational spending efficiency and increased state revenue. This policy aligns with the mandate of Law No. 17 of 2023 on State Finances. “In the meeting with the President, the President’s directive was, firstly, to maintain the APBN so that the deficit remains below 3%,” said Airlangga after the meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Thursday (19/3/2026). Airlangga explained that spending efficiency will be implemented across various ministries and agencies. This step was previously discussed with relevant institutions. The government is also reviewing work flexibility for civil servants, including the option of working from home one day in every five working days as part of operational efficiency. Similar policies are open to the private sector. “We are preparing all of this again. Once the concept is mature, we will immediately inform the public in more detail,” said Airlangga. On the revenue side, Airlangga said President Prabowo Subianto has instructed the optimisation of income from coal commodities. This step leverages the rise in coal prices amid global energy supply disruptions. As a follow-up, the government will revise the 2026 Coal Work Plan and Budget (RKAB). The government is also considering implementing export taxes to increase revenue. “Then, regarding the additional price, for coal there will also be calculations related to export taxes, the amount will be reviewed by the team. The hope is that government revenue will also increase with the windfall profit,” said Airlangga. In addition to the APBN, the meeting also discussed accelerating the conversion of diesel power plants to solar power plants to reduce oil fuel consumption. This programme is requested to be immediately realised involving Danantara.