DPR Budget Committee Deems State Budget Deficit Still Within Manageable Range

Jakarta (ANTARA) - The House of Representatives’ Budget Committee (Banggar DPR) of the Republic of Indonesia considers the current State Revenue and Expenditure Budget (APBN) deficit to still be within a manageable range.

Banggar DPR Chairman Said Abdullah stated that the APBN deficit as of March 2026 reached Rp240.1 trillion, equivalent to 0.93% of Gross Domestic Product (GDP), still far from the end-of-year target deficit of Rp689.1 trillion or 2.68% of GDP.

“Lately, there have been widespread rumours and news that the APBN balance is thinning, the APBN deficit will exceed 3% by year-end, and even rumours that the 2026 APBN could collapse,” Said said in a statement received in Jakarta on Tuesday.

He noted that state expenditure realisation as of March 2026 reached Rp815 trillion, with the largest portion coming from central expenditure at Rp610.3 trillion. This expenditure focus is to finance various priority programmes.

According to him, the strategy of accelerating expenditure does indeed have consequences for widening the APBN deficit.

However, he emphasised that in managing priority programmes, improvements are needed that should be noted by ministries and technical agencies, particularly the National Nutrition Agency, the Ministry of Cooperatives, and the Ministry of Villages.

Due to external pressures, such as rising oil prices and the rupiah exchange rate, Said said the government is likely to opt for refocusing or reallocating programme budgets, while still positioning the APBN as a function of stabilisation, allocation (social protection), and distribution (social equity).

Thus, by the end of the year, APBN expenditure could be lower than the allocation, so he predicts the APBN deficit will be lower than planned, at around 2.56% of GDP or equivalent to Rp658.3 trillion.

Meanwhile, regarding the rumour circulating about the 2026 APBN balance being only Rp120 trillion, he explained that the 2026 APBN balance, which comes from the Excess Budget Balance (SAL) of the 2025 APBN amounting to Rp420 trillion, remains intact.

However, he continued, Rp300 trillion of it has been placed from Bank Indonesia (BI) to banks under the State-Owned Banks Association (Himbara).

“This means the SAL remains intact at Rp420 trillion, and even the government receives returns from the placement of that SAL from Himbara banks,” he said.

In accordance with the APBN Law, the Banggar Chairman emphasised that the SAL can only be used for expenditure if there is approval from the DPR.

Although the current budget deficit is within a safe range and the SAL remains intact, he reminded that future APBN management must still be more cautious.

He also supports the safe mode activated by the Minister of Finance and the Governor of BI, by issuing several policies.

The various policies in question include budget refocusing, restrictions on US dollar transactions, the establishment of the Bond Stabiliser Fund (BSF), higher yield incentives for placing US dollars in Himbara banks, and the issuance of Panda Bonds.

Through these safe mode policies, according to him, it will immediately curb the large financing needs this year.

“The government will not face a difficult situation in financing expensive funding costs,” Said stated.