MP Criticises Overly Optimistic State Budget Presentation
A member of Commission XI of the House of Representatives, Harris Turino, has criticised the Ministry of Finance’s report on the State Revenue and Expenditure Budget (APBN) for March 2026, deeming it overly optimistic. According to Harris, the monthly APBN presentation fails to show the fundamental cracks that are occurring.
“I appreciate the enthusiasm and performance of the Ministry of Finance. However, this document is too eager to sell optimism, thereby neglecting to show the fundamental cracks that are actually widening,” Harris stated in a written statement on Wednesday, 6 May 2026.
The Chairman of the PDI Perjuangan Faction Group in Commission XI stated that the government appears to be beautifying the facade of a building while choosing to cover up the foundation, whose materials are starting to crumble due to being eroded by high-interest debt.
The first presentation highlighted by Harris is the claim of high state revenue growth. The Ministry of Finance presented state revenue realisation of Rp 574.9 trillion, supported by strong tax revenue growth of 20.7%. As the DPR commission responsible for fiscal oversight, he assessed this figure more realistically.
He stated that this fantastic growth is largely supported by seasonal Eid al-Fitr factors, namely holiday allowances (THR) for 10.7 million civil servants, TNI/Polri, and pensioners, which directly contribute to income tax (PPh) Article 21 receipts. “This is not structural growth; this is just temporary ‘doping’ that will disappear once Ramadan ends,” he said.
This tax deposit increase is also driven by the practice of delaying refunds. On one hand, Commission XI continues to receive complaints from the business world. Although he agrees that tax refunds need to be tightened to prevent leaks, refunds should be the right of taxpayers for overpayments to the government. He considers withholding refunds to inflate net receipts on paper as an unhealthy mechanism.
The high deficit also drew scrutiny. Harris views the narrative of controlled expansive spending as a paradox. The APBN deficit in March surged by 140.5%. The high state spending is directed towards priority programmes, but its implementation in the field needs to be monitored to avoid waste or even deviations.
In addition, the source of spending financing from debt also poses risks for future generations. The claim of first-quarter 2026 economic growth being higher, reaching 5.6%, is seen as growth predominantly driven by government spending, sourced not from strong original revenues but from drawing new debt.
The government is indeed right to be grateful for the inflow of capital into the bond market in April. However, on one side, the investor offer ratio is declining, and the yield on government securities (SBN) is rising. This means investors are demanding a higher price to lend debt, and risk is perceived to be increasing. The debt interest payment burden will swell.
Harris assesses that a careless fiscal architecture impacts the weakening of the rupiah exchange rate. Global conditions are indeed turbulent. “But our internal fundamentals are also fragile. Growth financed by debt with increasingly expensive interest is a recipe for currency weakening,” he said.
The swelling energy subsidy burden due to the Middle East conflict is already tormenting enough. Now, with expensive debt and a weakening rupiah, the cost of import substitution, from fuel to food ingredients, is soaring. Ordinary people are hit from two directions: rising prices due to the exchange rate, but the government must hold subsidies because the debt deficit is widening.
Therefore, he criticised the culture of fiscal communication that only highlights growth without daring to expose the costs and risks. “We demand transparency. Do not just beautify the numbers on the front page, but hide the due debt bills on the back page,” he said.
Previously, Finance Minister Purbaya Yudhi Sadewa presented that the 2026 APBN is growing expansively. “Up to March, the APBN is growing quite expansively. If you look at 2026, state revenue growth is 10%,” he said on Tuesday, 5 May 2026.
State revenue realisation amounted to Rp 574.9 trillion, while state spending reached Rp 815 trillion. Thus, the APBN deficit up to the end of March 2026 reached Rp 240.1 trillion.