Finance Minister Purbaya Rules Out 2026 Budget Revision Despite Global Uncertainty from Iran-US-Israel Conflict

Jakarta – Finance Minister Purbaya Yudhi Sadewa has stated that despite global economic uncertainty caused by the Iran-US-Israel conflict, the government will not revise the 2026 state budget.

According to him, the government has not identified an urgent need to overhaul the budget, as fiscal conditions remain sufficiently strong supported by improving state revenue performance.

“We will not (change the 2026 budget). Because state revenue conditions remain quite good,” Purbaya said during a press conference on the March 2026 edition of “APBN KITA” (Our State Budget) on Wednesday, 11 March 2026.

He explained that the 2026 budget was deliberately designed with a deficit to provide the government with space to stimulate economic activity.

Additionally, the government is seeking to accelerate budget spending absorption from the start of the year so that its impact on society and the business world can be felt more quickly.

However, Purbaya acknowledged that the government is preparing anticipatory measures should global economic pressures continue to increase and affect domestic finances. Consequently, adjustments to fiscal policy, including changes to the budget, remain possible if future economic conditions warrant such steps.

“If conditions become pressing in the future, of course we will adjust the budget. But right now we are starting from a strong fiscal position,” he said.

Purbaya also urged the public not to worry about the government’s fiscal condition, as budget management will continue to be directed at maintaining economic stability whilst protecting purchasing power.

The state budget deficit at the end of February 2026 reached 135.7 trillion rupiah, equivalent to 0.53 per cent of gross domestic product (GDP).

Although this remains within the 2026 budget framework, it represents an increase compared to the budget deficit for the same period in February 2025, which was 30.7 trillion rupiah or approximately 0.13 per cent of GDP.