Finance Minister and BUMN Deputy Minister Visit Airlangga's Office for Limited Coordination Meeting

Jakarta — Senior economic ministers of the Red and White Cabinet convened at the office of Economic Coordinating Minister Airlangga Hartarto on Monday afternoon, 16 March 2026, for a limited coordination meeting (Rakortas).

Finance Minister Purbaya Yudhi Sadewa arrived at the Economic Coordination Ministry office at 13.16 Western Indonesia Time. However, Purbaya confirmed he did not yet know what would be discussed during the meeting. “I don’t know yet, we’ll find out,” he told journalists at the ministry on 16 March 2026.

Shortly after Purbaya’s arrival, Deputy Minister of State-Owned Enterprises BP BUMN Tedi Bharata and Deputy Minister of Public Works Diana Kusumastuti also attended the meeting.

According to information received, the Rakortas convened around 13.30 Western Indonesia Time to follow up on discussions from the full cabinet session at the State Palace on Friday, 13 March 2026, with President Prabowo Subianto.

Airlangga Hartarto stated that various government simulations show the state budget deficit could potentially exceed the 3 per cent ceiling if world oil prices increase over an extended period. “This means that with various scenarios, a 3 per cent APBN deficit will be difficult to maintain unless spending cuts are made, which will also impact economic growth,” Airlangga said during the full session at the State Palace on Friday, 13 March 2026.

Airlangga presented three scenarios. In the first scenario, Indonesian Crude Price is estimated at around 86 US dollars per barrel. The rupiah exchange rate is assumed at approximately 17,000 rupiah per US dollar, higher than the 16,500 rupiah per dollar budgetary assumption.

With these assumptions, an economic growth rate of 5.3 per cent, and a government bond yield of approximately 6.8 per cent, the state budget deficit is estimated to reach 3.18 per cent.

Under a second scenario with economic growth of 5.2 per cent and bond yields of 7.2 per cent, the budget deficit is projected to increase to 3.53 per cent.

In the pessimistic scenario, oil prices are estimated to reach 115 US dollars per barrel, with the rupiah weakening to approximately 17,500 rupiah per US dollar. With assumed economic growth of 5.2 per cent and government bond yields of 7.2 per cent, the state budget deficit is projected to widen to 4.06 per cent.