Purbaya Reveals Budget Efficiency to Be Implemented in Three Stages

The government will implement a budget efficiency scheme this year in three stages. This efficiency is being carried out as a strategy to anticipate the ripple effects of economic pressures due to the war in the Middle East between Iran, the United States, and Israel.

The efficiency scheme was revealed directly by Finance Minister Purbaya Yudhi Sadewa during the halal bihalal with reporters at the Ministry of Finance headquarters in Jakarta on Wednesday (25/3/2026).

“It’s stage one, stage two, stage three that we’ll implement later,” said Purbaya, as quoted on Thursday (26/3/2026).

Purbaya stated that the value of the budget efficiency designed aligns with the statement by State Secretary Minister Prasetyo Hadi when accompanying President Prabowo Subianto in the President Prabowo Answers programme in Hambalang on Tuesday (17/3/2026). The efficiency amounts to Rp 81 trillion.

With this efficiency strategy, Purbaya assured that the government can maintain fiscal stability with a deficit around the lower limit of the safe boundary of the State Finance Law at 3% of gross domestic product (GDP). The 2026 state budget deficit target is 2.68% of GDP.

“Clearly, the budget is already clear. So, I can control the state budget, it won’t exceed 3%,” Purbaya emphasised.

For information, State Secretary Minister Prasetyo Hadi revealed that the total budget efficiency or savings designed for the 2026 state budget amounts to Rp 81 trillion. This is in addition to the value of budget reallocations that have already been reviewed at Rp 800 trillion.

“We’ve already got Rp 80 trillion. Outside of what we’ve already reallocated. Total approximately US$ 70 billion. What has already been reallocated is approximately Rp 800 trillion, besides that, the gentleman ordered further efficiency, we’ve already got around Rp 81 trillion,” Prasetyo stated to Prabowo.