Finance Minister Purbaya Promises to Safeguard Indonesia's State Budget Credibility

Finance Minister Purbaya Yudhi Sadewa disclosed that debt absorption to finance the 2026 state budget deficit had reached Rp305.5 trillion as of 30 April 2026. The figure is equivalent to 36.7 percent of the total debt-financing ceiling set in the 2026 state budget at Rp832.2 trillion. On the other hand, non-debt financing was recorded at minus Rp7 trillion, around 4.9 percent of the Rp143.1 trillion target. The minister explained that the negative figure indicates the government has disbursed expenditures under non-debt financing schemes. ‘This financing is kept steady and measured. I think debt financing up to April stands at Rp305.5 trillion. Non-debt financing minus Rp7 trillion — what does that mean? It means Rp7 trillion has already been disbursed,’ Purbaya said at the KiTa APBN April 2026 press conference in Jakarta on Tuesday, 19 May. Cumulatively, the financing realisation for the budget through end-April 2026 had reached Rp298.5 trillion. This equates to 43.3 percent of the overall APBN financing target of Rp689.1 trillion. The government stressed that all financing management is conducted with prudence to safeguard fiscal stability and the state’s cash position. Purbaya also assured that the government did not encounter significant obstacles in issuing debt securities. Market confidence in Indonesia’s fiscal management is still assessed as very solid, allowing the country to meet its funding needs amid global market dynamics. ‘It should be noted that our funds are credibly balanced; we have no difficulty issuing debt securities and we will continue to safeguard the credibility of our APBN,’ the Finance Minister Purbaya affirmed. Going forward, the government commits to continuing to manage the 2026 APBN financing prudently and in a measured way. The main focus remains on maintaining government liquidity, optimising cash conditions, and staying alert to developments in international financial markets. These strategic steps are taken to ensure that the APBN remains a credible instrument in supporting the national economy. ‘And we will continue to safeguard the credibility of our APBN,’ he concluded. (Ins/I-1) Permata Bank’s Head of Research Josua Pardede warned of a potential jump in the 2026 APBN deficit to as much as Rp200 trillion due to a weakening rupiah and higher oil prices. Each US$1 rise in oil price could burden the APBN by up to Rp6.8 trillion. Said predicted that the year-end deficit would actually be lower than the stated ceiling (2.68% of GDP). The Ministry of Finance (Kemenkeu) recorded tax revenue growth of 20.7% year-on-year to Rp394.8 trillion. In the first two months of the fiscal year, the APBN deficit reached Rp135.7 trillion, accompanied by a contraction in state revenue of Rp94.3 trillion. President Prabowo Subianto is scheduled to deliver the KEM-PPKF RAPBN 2027 to the DPR. Finance Minister Purbaya says this marks a new chapter for Indonesia’s fiscal policy. VAT funded by the government has portions covered at 100% and 40%; the exact scheme will be laid out later. The programme is also expected to accelerate financial inclusion and improve the welfare of the people. Indonesia Head of Research DBS Group, William Simadiputra, said the rupiah still has room to strengthen, though not as optimistically as the government’s projections. The IHSG strengthened further. Finance Minister Purbaya Yudhi Sadewa said reaching the 10,000 level is not an impossible target for 2026.