Finance Minister Purbaya Dismisses Immediate Plans for 3% PDB Deficit Regulation; State Budget Remains Safe

Finance Minister Purbaya Yudhi Sadewa has assured the public that the government currently has no plans to issue a Regulation in Lieu of Law (Perppu) that would permit the government to exceed the maximum state budget deficit limit of 3% of gross domestic product (GDP).

Purbaya made this assurance following a limited coordination meeting held at the office of the Ministry of Coordinating Economic Affairs regarding plans for issuing the Perppu on Monday (16 March 2026) in Jakarta.

He reaffirmed that during meetings between economic ministers in the Red and White Cabinet together with the Minister of Coordinating Economic Affairs Airlangga Hartarto, the government’s state budget remained in a safe category in responding to dynamics of the Middle East conflict that has influenced global crude oil prices. Consequently, the issuance of a Perppu would not be undertaken at this stage.

“It is not yet evident at this point, because the budget remains safe,” Purbaya stated after attending the meeting.

Nevertheless, he emphasised that consideration of the Perppu remains open, provided that global crude oil prices continue to move at elevated levels over the long term and remain substantially above the 2026 macroeconomic assumption of US$70 per barrel.

“If oil prices remain high and persist in that manner, only then will we calculate what the budget condition will look like, but not automatically leading to a Perppu,” Purbaya asserted.