Weekly Economic Roundup: B50 Launch to 2026 State Budget Deficit Projection

The past week’s economic news was marked by the launch of the B50 biodiesel programme and projections for the 2026 State Budget (APBN) deficit. President Prabowo Subianto stated that Indonesia is now in the global spotlight after implementing the B50 biodiesel mandate, calling it a leading effort in reducing carbon emissions. The launch took place in Karawang, West Java. The President also emphasised that the construction of five dams and the successful implementation of B50 are tangible proof of the government’s hard work in managing the nation’s wealth to achieve a prosperous Indonesia, speaking during the inauguration of the Meninting Dam in West Lombok, West Nusa Tenggara. Minister of Energy and Mineral Resources Bahlil Lahadalia reported that the B50 mandate could save the country up to IDR 170 trillion in foreign exchange by reducing the need for diesel imports. Separately, Minister of Cooperatives Ferry Juliantono announced that training for 30,000 prospective managers of the Merah Putih Village Cooperatives (KDKMP) will be completed by early August 2026, after which they will be deployed to support the government’s priority programme. Meanwhile, Finance Minister Purbaya Yudhi Sadewa projected that the 2026 State Budget deficit will widen to IDR 734.3 trillion, or 2.85 percent of gross domestic product (GDP), compared to the initial target of IDR 689.1 trillion or 2.68 percent of GDP.