State Budget Deficit Reaches Rp196.5 Trillion in First Half of 2026

Finance Minister Purbaya Yudhi Sadewa revealed that the state budget (APBN) deficit for the first semester of 2026 reached Rp196.5 trillion, or 0.76% as a percentage.

“The state budget deficit is being kept within safe limits. If we use the same rate of 0.7% for six months, it means the annual deficit would be 1.52%. Critics will still claim the budget is in bad shape, but this figure is the actual reality,” said Purbaya during a meeting with the Indonesian House of Representatives (DPR RI) Budget Committee on Tuesday (7/7/2026).

Purbaya assessed that throughout the year, the state budget deficit will rise due to the accumulation of expenditures in the second semester. However, he ensured that the 2026 state budget deficit will remain below 3%.

Furthermore, throughout the first semester of 2026, state revenue was recorded at Rp1,459.4 trillion, reaching 46.3% of the state budget target and growing by 21.4% year-on-year (yoy).

“Tax revenue amounted to Rp1,187.8 trillion, reaching 44.1% of the state budget target and growing by 21.4% year-on-year,” Purbaya stated.

During the first semester of 2026, state expenditure totalled Rp1,656.0 trillion, with an absorption rate of 43.1% of the state budget ceiling and a growth of 17.8% (yoy). In detail, this state expenditure performance consisted of central government spending of Rp1,296.8 trillion, with an absorption rate of 41.2% of the ceiling and a growth of 29.4% (yoy).