Pledge to Keep 2026 State Budget Deficit Below 3 Percent, Purbaya Reveals His Strategy

Finance Minister Purbaya Yudhi Sadewa has emphasised that his ministry will keep the 2026 state budget deficit below 3 percent, despite the current surge in global energy prices. “We have calculated everything. Even with an average global oil price of US$100 per barrel, we have locked in the deficit below 3 percent, around 2.9 percent. So, no problem,” Purbaya stated at Wisma Danantara in Jakarta on Wednesday, 1 April 2026. The 2026 state budget was initially projected to face a deficit of Rp698.15 trillion, equivalent to 2.68 percent of GDP. This has been adjusted with an additional 0.12 percent deficit projection due to the war between the United States (US) and Israel against Iran. The conflict has driven up global oil prices, as seen in Brent and West Texas Intermediate (WTI) types, which are now around US$100 per barrel. This is higher than the January 2026 average for Brent (ICE) at US$64 per barrel. “From 2.68 percent to 2.9 percent is just 0.12 percent of GDP. Not a big deal,” Purbaya remarked. However, he noted that the 2.9 percent deficit assumes an average global oil price of US$100 per barrel until year-end. Therefore, Purbaya stressed that the government will implement various spending savings across ministries to reduce the state budget deficit. This measure will also be supplemented by holdings of a Budget Surplus Balance (SAL) amounting to Rp420 trillion. “If push comes to shove, I have the SAL. Now it’s up to Rp420 trillion. It will be used if absolutely necessary. But (currently) it hasn’t been, because the country’s financial condition is very good; I have plenty of buffers,” he said.