Purbaya Explains Q1 2026 State Budget Cushions Global Turbulence Impact on Indonesia

Finance Minister Purbaya Yudhi Sadewa stated that the fiscal situation in the first quarter of 2026 remains under control. The State Revenue and Expenditure Budget (APBN) is able to serve as a shock absorber for global turbulence so that its impact does not spread widely within Indonesia. “Amid ongoing global turbulence, the Q1 2026 APBN is able to function as a shock absorber while supporting the development agenda with risks remaining controlled,” Purbaya said, quoted from Kontan on Monday (6/4/2026). State revenues increased by up to 10.5% to reach Rp 574.9 trillion compared to the same period last year. These revenues were followed by state expenditures that rose significantly by 31.4% to Rp 815.0 trillion from the previous period in Q1 2025, which was at 1.4%. “We really want the expenditures to be spent evenly or almost evenly throughout the year so that the economic impact is more significantly felt throughout the year,” Purbaya explained. However, there is a consequence, where the APBN recorded a deficit of Rp 240.1 trillion or equivalent to 0.93% of gross domestic product (GDP). “But clearly, we are continuously monitoring throughout the year what the revenues and expenditures will be like. So we are very cautious in considering this,” Purbaya said. The government has prepared scenarios to cushion the rise in world oil prices. “So for the subsidised ones, they are safe until the end of the year. So the public knows, no need to worry, no need to fear. We have calculated it,” he said, quoted from Kompas.com. In addition, there are mitigation steps to maintain APBN stability. “We are already prepared with what was announced previously with the assumption of 100 [barrels at] 100 US dollars, so we are ready in layers,” Purbaya explained.