DPR to Revise State Finance Law Soon

Commission XI of the House of Representatives (DPR) will soon commence discussions on revising Law No. 17 of 2003 on State Finance. Commission XI Chairman Mukhamad Misbakhun stated the body aims to complete the State Finance Law revision before the 2027 National Budget takes effect on 1 January next year.

Misbakhun denied allegations that the revision would alter the 3% GDP deficit ceiling. “We are not moving towards that situation,” he told journalists at Balai Kartini, Jakarta, on Monday, 25 May 2026.

According to Misbakhun, the State Finance Law requires revision due to overlapping regulations, including the Finance Minister’s role as a shareholder in state-owned enterprises (SOEs), which is no longer applicable since Danantara’s establishment, where the Ministry of Finance is no longer mandated to hold SOE shares.

Misbakhun said the revision would take the form of an omnibus law encompassing the State Treasury Law and Non-Tax State Revenue Law. “This must be resolved to ensure the laws are fully harmonised,” he added.

The State Finance Law revision will proceed after Commission XI completes revisions to the Financial Sector Development and Strengthening Law (P2SK), which is targeted for completion by June 2026.