Parliamentary Budget Committee Chair Commits to Maintaining 3% Budget Deficit Target This Year

Jakarta — The Chair of the Parliamentary Budget Committee (Banggar) Said Abdullah has affirmed that the state budget deficit will remain below the 3% threshold of Gross Domestic Product (GDP) as mandated by the State Finance Law.

According to Said, this commitment is essential for maintaining fiscal stability whilst signalling positively to markets and investors. Parliament through its Budget Committee remains committed to adhering to the fiscal policy framework established by law, including the budget deficit ceiling.

“As Banggar Chair, we comply with the APBN Law and the State Finance Law. Our deficit limit is 3% of GDP, and I have never considered exceeding that limit,” Said said on Friday, 13 March 2026.

He explained that Indonesia’s current fiscal condition remains within relatively safe parameters. The Budget Committee estimates the state budget deficit can be maintained at approximately 2.8% of GDP, with no scenarios pointing towards exceeding the established deficit ceiling.

“I believe our deficit can still be maintained at around 2.8%. We need not worry excessively as long as fiscal management is conducted with discipline,” he stated.

Said added that various global dynamics, including geopolitical tensions and fluctuating oil prices, could potentially pressure the economy. However, he assessed that the government has sufficient policy space to mitigate such risks.

He stressed that the government must strengthen fiscal management through sharper prioritisation of programmes and more effective state expenditure management. Such measures are believed capable of maintaining fiscal health whilst strengthening national economic resilience.

He also emphasised that compliance with the deficit ceiling is not merely a technical budgeting matter, but also concerns the credibility of Indonesia’s fiscal policy globally. “This also signals to markets and investors that our fiscal foundation is healthy, stable, and sustainable,” said the PDI-Perjuangan faction legislator.

The Parliamentary Budget Committee, Said continued, will continue to oversee government fiscal policy to ensure it remains within a prudent framework and maintains national economic stability amid various global challenges.

Previously, Finance Minister Purbaya Yudhi Sadewa had affirmed that the 3% budget deficit ceiling would be maintained despite targeting 8% economic growth by 2029. The government has not yet changed the 3% deficit limit stipulated in the explanatory section of Article 12 of Law No. 17/2003 on State Finance.