Finance Minister, Sri Mulyani Indrawati, has proposed an expanded budget of Rp52.02 trillion (US$3.21 billion) for the 2026 fiscal year, marking an increase of Rp4.88 trillion (US$301.2 million) from the initial indicative ceiling of Rp47.13 trillion (US$2.91 billion). 

The proposal was submitted during a hearing with Finance Commission XI of the House of Representatives (DPR) on Monday, July 14, 2025.

Deputy Minister of Finance, Suahasil Nazara, said that the proposed figure includes allocations for seven public service agencies (Badan Layanan Umum, or BLU). Excluding these institutions, the core indicative budget stands at Rp41.64 trillion.

"This proposal represents an optimal allocation to carry out our duties as the manager of fiscal policy," Suahasil said.

He emphasized that the additional funds are intended to support strategic needs. The proposed increase will cover four key areas: support for achieving revenue targets (Rp1.20 trillion), mandatory and priority services (Rp1.74 trillion), unfunded ICT spending (Rp1.90 trillion), and basic funding for newly established echelon I units (Rp41.32 billion).

He noted that like other ministries, the indicative ceiling primarily covers staffing, operational expenditures, and minimal core functions. "It does not yet reflect funding for strategic programs, which is why additional allocations are necessary," Suahasil added.

In response, Commission XI Chair Mukhamad Misbakhun questioned the rationale behind a budget request coming from the institution in charge of the state budget.

"It's like the Finance Minister asking herself for more money. I don't even know how to phrase it she's asking us to approve her request to herself," Misbakhun said pointedly.

He also emphasized the need for internal review before approval. "We understand the goal is to maintain fiscal discipline and efficiency, as emphasized by President Prabowo," he added.

Ironically, this request for an increased budget comes just months after the ministry faced an Rp8.9 trillion budget cut in 2025, following Presidential Instruction (Inpres) No. 1/2025 mandating spending efficiency across ministries and regional governments.

Sri Mulyani said that the 2025 budget initially Rp53.19 trillion including BLU funds and Rp42.82 trillion without had to be trimmed significantly. “From Rp42.8 trillion, we had to cut Rp8.9 trillion,” she noted.

Suahasil further clarified that the cuts were largely applied to personnel expenses and office operations. “The Inpres encouraged shared office use and streamlined operations,” he said.

The ministry claims that between 2020 and 2024, it achieved Rp2.82 trillion in budget savings through efficiency measures. “This contributes to macro-level fiscal discipline in both revenue and expenditure management,” Suahasil cited.

The ministry’s budget proposal spans five core programs: fiscal policy, revenue management, expenditure management, treasury and state asset management, and general administration. Meanwhile, the seven BLUs under the ministry are set to receive a combined Rp10.38 trillion.

These include:

​Indonesia Endowment Fund for Education (LPDP): Rp3.93 trillion

Palm Oil Plantation Fund Management Agency (BPDP): Rp6.06 trillion

Indonesian Aid Fund (LDKPI): Rp43.01 billion

Environmental Fund Management Agency (BPDLH): Rp69.6 billion

​Government Investment Center (PIP): Rp95.64 billion

​State Asset Management Agency (LMAN): Rp163.47 billion

​State College of Accountancy (PKN STAN): Rp15.03 billion