How the Government Keeps the State Budget Deficit Below 3 Percent
Coordinating Minister for the Economy, Airlangga Hartarto, stated that the government is continuously strengthening national fiscal resilience amid global dynamics, including rising energy and commodity prices. This strengthening of fiscal resilience is achieved by keeping the State Revenue and Expenditure Budget (APBN) deficit below 3 percent.
“As per the directives from the Full Cabinet Session and already discussed with technical ministries,” said Airlangga in an official statement on Thursday, 19 March 2026. He delivered the statement after a meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta.
To maintain the budget deficit, Airlangga mentioned that efficiency measures will be implemented across various ministries and agencies. Additionally, the government is preparing anticipatory steps against the impact of rising fuel oil (BBM) and other commodity prices. One effort will be to increase coal production volume through adjustments to the Work Plan and Budget (RKAB).
The government, according to Airlangga, is reviewing policy adjustments regarding coal export taxes to boost state revenues, in line with the upward trend in commodity prices. In the energy sector, the government is also promoting the acceleration of converting diesel power plants (PLTD) to solar power plants (PLTS) as an efficiency measure amid high oil prices. This mandate has been assigned to the Danantara Investment Management Agency for immediate follow-up.
Furthermore, the government is examining a work flexibility policy through a one-day Work From Home (WFH) scheme out of every five working days. This would result in significant savings in terms of fuel usage for mobility, amounting to one-fifth of the usual expenditure.
The government is currently finalising the technical aspects of implementing this policy. The application of WFH is expected not only for Civil Servants (ASN) but also to be adopted by the private sector and local governments.
The implementation of this policy is scheduled to begin after Idul Fitri 2026. However, the exact timing will be determined further.