Indonesian Political, Business & Finance News

State Budget Deficit Reaches Rp 196 Trillion in First Half of 2026

| Source: VIVA Translated from Indonesian | Economy
State Budget Deficit Reaches Rp 196 Trillion in First Half of 2026
Image: VIVA

Finance Minister Purbaya Yudhi Sadewa reported that the state budget deficit reached Rp 196.5 trillion in the first semester of 2026, equivalent to 0.76 percent of gross domestic product (GDP). The deficit resulted from state revenue of Rp 1,459.4 trillion, which grew 21.4 percent year-on-year (yoy) as of June 2026, against state expenditure of Rp 1,656 trillion, which grew 17.8 percent.

“State revenue has continued to increase, from Rp 574.9 trillion at the end of March to Rp 1,459.4 trillion at the end of June 2026,” Purbaya said during the APBN KITA press conference in Jakarta on Tuesday, 21 July 2026. “Thus, the fiscal performance in the first semester of 2026 shows a strengthening trend.”

In detail, the state revenue of Rp 1,459.4 trillion comprised tax revenues of Rp 1,035.7 trillion, which grew by 24.6 percent. Customs and excise revenues contributed Rp 152 trillion, growing by 3.4 percent, while Non-Tax State Revenue (PNBP) reached Rp 271 trillion, growing by 21.6 percent.

On the expenditure side, the total of Rp 1,656 trillion included central government spending of Rp 1,298.6 trillion and Transfers to Regions (TKD) of Rp 357.4 trillion. Purbaya emphasised that with robust revenue growth, productive spending, and measured financing management, the budget deficit remains under control. “The state budget management is sound, expansionary, and supports development,” he concluded.

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