Finance Minister Purbaya Prepares Massive Budget for Defence Equipment
Finance Minister Purbaya Yudhi Sadewa stated that the government has prepared a substantial budget for the procurement of main defence systems (alutsista) for the coming years. This budget allocation is expected to support President Prabowo Subianto’s initiatives to strengthen the nation’s defence posture across land, sea, and air domains.
“Next year, we have also budgeted a quite significant amount,” said Purbaya following a defence equipment handover ceremony to the Indonesian National Armed Forces (TNI) at Halim Perdanakusuma Air Force Base, East Jakarta, on Monday, 18 May 2026.
However, Purbaya declined to disclose the exact amount prepared for defence procurement next year. “But if you ask for the specific figure, it is confidential. However, we will continue to strengthen our land, sea, and air capabilities. My role is simply to ensure the payments are made,” said the former Chairman of the Deposit Insurance Corporation (LPS) Board of Commissioners.
According to Presidential Regulation (Perpres) Number 118 of 2025 regarding the Details of the State Revenue and Expenditure Budget for the 2026 Fiscal Year, the budget for the Ministry of Defence is set at IDR 187.1 trillion. In the regulation promulgated on 28 November 2025, the Ministry of Defence’s budget is divided into two functions: a defence function amounting to IDR 186.6 trillion and an education function valued at IDR 490 billion.
Specifically, the budget allocated for the modernisation of defence equipment, non-defence equipment, and defence infrastructure is valued at IDR 84.4 trillion. “There is a budget for next year, and for the year after. It has been budgeted for next year as well. It is quite large,” said the State Treasurer.
Purbaya agreed with President Prabowo that Indonesia needs to strengthen its defence amidst current global uncertainties. “In the midst of uncertainty such as we face now, we must indeed maintain our defence capabilities,” Purbaya added.
Despite the significant increase in the defence budget, Purbaya emphasised that the government will maintain the state budget (APBN) deficit below the threshold of 3 per cent of Gross Domestic Product (GDP). He urged the public not to worry, even as the government continues to bear the costs of flagship projects, such as the free nutritious meal (MBG) programme and fuel subsidies.
“Everything has been carefully calculated, including the MBG and other programmes, without disrupting other development initiatives. We are managing it well, including subsidies for various sectors, such as fuel,” Purbaya concluded.