State Spending to Reach 102.6% of 2026 Budget Ceiling, Finance Minister Explains
Finance Minister Purbaya Yudhi Sadewa estimates that state spending realisation will surpass the ceiling set in the 2026 State Budget (APBN). Based on the 2026 APBN outlook, state spending will reach Rp 3,942.4 trillion, or 102.6% of the target of Rp 3,842.7 trillion. This is 14.8% higher than last year’s realisation of Rp 3,435.5 trillion.
“This is to support priority development programmes, maintain food price stability and public purchasing power, as well as to support regional government administration, disaster management, and additional special autonomy funds,” Purbaya stated during the Semester I-2026 Report at the Budget Committee of the House of Representatives in Jakarta on Tuesday (7/7/2026).
Purbaya explained that the higher state spending includes an additional expenditure of Rp 132 trillion for the government’s obligations in the form of energy subsidies and compensation. The government is also proposing a reallocation from the State General Treasurer Budget to the budgets of ministries/agencies, or vice versa, to strengthen social security in the health sector and the capacity of ministries and agencies to carry out their main functions and services.
The overshoot is attributed to central government spending, which is forecast at 103% of the target, reaching Rp 3,245.5 trillion from the planned Rp 3,149.7 trillion. This comprises ministry/agency spending at 107.9% of the target and non-ministry/agency spending at 98.5% of the target. Meanwhile, the transfer to regions component is projected at 100.6% of the target, amounting to Rp 696.9 trillion.
On the revenue side, the outlook is also higher than the target, at Rp 3,208.1 trillion, equivalent to 101.7% of the 2026 APBN target of Rp 3,153.6 trillion. Consequently, Purbaya confirmed that the APBN deficit will remain below the safe limit of 3% of GDP as stipulated by the State Finance Law, at 2.85% of GDP or Rp 734.3 trillion. This deficit outlook is 106.6% of the 2026 APBN deficit target of Rp 689.1 trillion, or 2.68% of GDP. “I am confident we can still push this deficit lower,” Purbaya asserted.