Indonesian Political, Business & Finance News

DPR Budget Committee States 2026 State Budget Remains Secure, Deficit Projected Below Target

| | Source: REPUBLIKA Translated from Indonesian | Finance
DPR Budget Committee States 2026 State Budget Remains Secure, Deficit Projected Below Target
Image: REPUBLIKA

REPUBLIKA.CO.ID, JAKARTA — The Chairman of the House of Representatives’ Budget Agency, Said Abdullah, emphasised that the 2026 State Revenue and Expenditure Budget (APBN) remains under control amid various issues regarding the potential collapse of the APBN and the widening of the fiscal deficit.

According to Said, reports claiming that the APBN balance is dwindling and the deficit is projected to exceed 3 per cent of gross domestic product (GDP) must be viewed objectively based on the government’s fiscal performance data.

“We must appreciate and respond wisely to criticisms or warnings from observers and academics. I see it as a form of concern. What is dangerous is if the public has become apathetic,” Said stated in his remarks on Monday (11/5/2026).

He explained that the national economy’s performance in the first quarter of 2026 showed quite positive results.

Economic growth was recorded at 5.6 per cent, driven by household consumption during Ramadan and Eid, as well as accelerated government spending.

“Government spending, which usually picks up speed in the second quarter, this year started earlier. As a result, government spending in the first quarter of 2026 grew 21.81 per cent year-on-year and contributed 1.26 per cent to economic growth,” he said.

In addition to economic growth, Said noted that several macro indicators still demonstrate good resilience.

Indonesia’s trade balance continues to record a surplus of $5.5 billion and has remained positive for 71 consecutive months.

On the fiscal side, state revenue realisation in the first quarter of 2026 reached Rp574.9 trillion, or a 10.5 per cent year-on-year growth. Tax receipts even grew 20.7 per cent to Rp394.8 trillion.

“Tax receipts grew very positively, enabling support for the acceleration of government programme and capital spending,” Said stated.

Meanwhile, state spending realisation was recorded at Rp815 trillion, or a 31.4 per cent increase compared to the same period last year.

According to Said, this spending acceleration did impact the widening of the APBN deficit to Rp240.1 trillion, or equivalent to 0.93 per cent of GDP, but the figure remains within safe limits.

“The deficit is still within a controlled range. In fact, I estimate that by the end of the year, the APBN deficit will be around 2.56 per cent of GDP, lower than the 2026 APBN target of 2.68 per cent of GDP,” he clarified.

He also clarified the issue regarding the APBN balance allegedly left at only Rp120 trillion. Said emphasised that the government’s excess budget balance (SAL) remains intact at Rp420 trillion.

“The SAL funds have not disappeared. Rp300 trillion is indeed placed in Himbara banks, but its status remains state property and even generates returns,” he stressed.

According to him, the use of SAL also cannot be done arbitrarily as it requires approval from the House of Representatives in accordance with legal provisions.

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