Meeting at the Palace, Airlangga: Anticipating 3 Percent Deficit and Energy Price Rises

The government is striving to strengthen national fiscal resilience amid global dynamics, including rising energy prices. Coordinating Minister for the Economy Airlangga Hartarto explained that President Prabowo Subianto emphasised the importance of keeping the state budget (APBN) deficit below 3 percent. To achieve this, the government is undertaking efficiency measures across various ministries and agencies. According to Airlangga, efficiencies within the government can prevent the APBN deficit from exceeding 3 percent. “We are maintaining the APBN so that the deficit remains below 3 percent and in line with the directives from the Full Cabinet Session, which have been discussed with technical ministries. This is done through efficiencies from various ministries and agencies. And with these efficiencies from various ministries and agencies, the 3 percent deficit can be maintained,” said Airlangga after a meeting with Prabowo at the Presidential Palace in Jakarta on Thursday (19/3/2026) afternoon WIB. In addition, Airlangga stated that the government is preparing anticipatory measures against the impact of rising fuel oil (BBM) prices and other commodities. One effort to be undertaken, he continued, is to increase the volume of coal production. “The President also requested that the volume of coal production be increased. This means there will be improvements related to the RKAB (Work and Budget Plan),” he explained. According to him, the government is also reviewing policy adjustments related to coal export taxes to boost state revenues, in line with the trend of rising commodity prices. In the energy sector, he said, the government is also encouraging the acceleration of converting diesel power plants (PLTD) to solar power plants (PLTS) as an efficiency measure amid high oil prices. This assignment has been given to BPI Danantara for immediate follow-up. Airlangga continued that the government is also reviewing work flexibility policies through a work-from-home (WFH) scheme for one day in every five working days. This policy is expected to reduce fuel consumption by up to 20 percent from normal levels through reduced mobility. “There are savings in terms of mobility usage; the petrol savings are quite significant, one-fifth of what we usually spend,” said Airlangga. He explained that the WFH scheme will not only apply to civil servants (ASN) but is also expected to be adopted by the private sector and regional governments. The government is currently refining various policies and will provide more detailed information to the public once all final concepts are prepared. All these measures reflect the government’s adaptive, measured, and proactive approach to maintaining economic stability. This also strengthens the foundation towards energy independence and national resilience.