Purbaya: State Budget Remains Secure, Government Has Not Yet Considered Emergency Deficit Decree

Jakarta — Finance Minister Purbaya Yudhi Sadewa stated that the government has not yet considered issuing an emergency government regulation (Perppu) to broaden the deficit of the State Budget and Expenditure (APBN).

According to Purbaya, the state budget’s current condition remains sufficiently secure despite potential increases in global oil prices. The Perppu would allow the government to exceed the maximum APBN deficit limit of 3 percent of gross domestic product (GDP).

“We do not see it happening now, as the budget remains secure. If oil prices remain high and persist, then we would recalculate the budget’s condition. But not immediately through a Perppu,” Purbaya said when met at the Ministry of Coordinating Affairs for Economic at Monday (16 March 2026).

Purbaya emphasised that the government continues to monitor developments in global commodity prices before taking further action.

Consequently, the government is still comprehensively calculating the net fiscal impact. According to Purbaya, to date this condition has not stabilised and thus cannot yet serve as a basis for major policy changes.

“We are examining what the net increase in budget burden will be. That is not yet visible now, not yet stable,” he said.

On the other hand, the Ministry of Finance is also beginning to prepare a number of precautionary measures to safeguard fiscal health.

Purbaya stated that the government has requested each ministry and agency to calculate possible spending adjustments, including what percentage of the budget could be cut if necessary.

However, he emphasised that such measures remain preparatory and are not necessarily to be immediately implemented.

“We have asked them to prepare. Subsequently, the Ministry of Finance will determine the initial steps for them to begin calculating. But it is not necessarily to be executed,” he said.

“We are not in crisis. The economy remains good, there is still spending. But we must prepare mature steps so that if necessary we can immediately execute them,” he said.

He added that the government remains committed to keeping the budget deficit under control in accordance with prevailing regulations. Under normal circumstances, the fiscal deficit is maintained to not exceed the 3 percent threshold against gross domestic product.

However, this limit may be exceeded if serious economic crisis conditions occur, such as when the domestic and global economies experience recession and require additional stimulus to promote growth.

“Under normal circumstances, no. But under crisis conditions, it is possible,” said Purbaya.