#Fiscal
Indonesia’s fiscal deficit widens to 2.02% of GDP, still below 2025 ceiling
Indonesia’s state budget deficit expanded to Rp 479.7 trillion (US$28.7 billion), or 2.02 percent of GDP, as of the end of October 2025, Minister of Finance Purbaya Yudhi Sadewa announced on Thursday, November 20, 2025.
Regional leaders protest budget cuts as fiscal tensions rise between central, local governments
Eighteen regional heads visited Finance Minister Purbaya Yudhi Sadewa’s office in Jakarta on Monday, October 7, 2025 voicing protests over the government’s decision to reduce the 2026 regional transfer budget (TKD).
Reduced transfers to regions raise concerns over fiscal autonomy
The government decision to reduce the amount of the Transfer to Regions (TKD) by more than US$13 billion for 2026, from US$61 billion (Rp919 trillion) in 2025 to US$47 billion has sparked concerns regarding its impact on regional autonomy and fiscal decentralization as it could undermine local governments’ ability to manage their own budgets effectively.
Government-House agree to shift growth strategy from debt to revenue
The government and the House of Representatives (DPR) have agreed to overhaul Indonesia’s economic growth strategy, shifting away from debt-driven expansion toward a revenue-based approach. Legislators expect the change to push growth to between 7–8 percent in the medium term.
Finance Commission urges productive use of Rp200 T idle funds withdrawn from BI
Finance Commission XI of the House of the Representatives (DPR) has emphasized that the government’s plan to withdraw Rp200 trillion (US$12.9 billion) in idle funds from the Indonesian Central Bank (BI) must be implemented productively and with precise targeting to support the real economy.
Purbaya blames fiscal, monetary missteps for recent protests
Minister of Finance, Purbaya Yudhi Sadewa, has attributed recent waves of public protests across Indonesia to long-standing policy missteps in the country’s fiscal and monetary management, calling for urgent corrections to avoid further economic strain.
Government boosts spending to Rp694 T amid calls for fiscal reform
Coordinating Minister for the Economy, Airlangga Hartarto, has pledged to accelerate government spending of at least 25 percent of the state budget, or Rp694 trillion (US$44.77 billion) in an effort to boost consumption and stabilize the economy amid ongoing unrest and rising unemployment.
Finance ministry prepares budget for new ministries, agencies
Ministry of Finance is preparing the state budget allocation for two newly established agencies and one new ministry under President Prabowo Subianto’s administration.
Indonesia aims for nearly Rp3,200 T in revenues, backed by tax and customs reforms
The government is targeting state revenues of Rp3,147.7 trillion (US$194 million) in 2026, a 9.8 percent increase over this year's target.
State budget drives 5.12 percent economic growth: Sri Mulyani
Minister of Finance Sri Mulyani Indrawati has emphasized the vital role of the state budget (APBN) in supporting Indonesia's economic resilience, while citing that the national economy grew by 5.12 percent year-on-year (yoy) in the second quarter (Q2) of 2025, despite mounting global uncertainties.
House, government agree to raise 2026 tax revenue
Finance and monetary Commission XI of the House of Representatives (DPR) and the government have reached a consensus to raise the tax revenue target in the 2026 State Budget Bill (RAPBN), aiming to strengthen the country’s fiscal foundation through ongoing revenue reform.
House approves Finance Ministry’s indicative budget, urges efficiency
Finance Commission XI of the House of Representatives (DPR) has approved the indicative budget ceiling for the Finance Ministry in the 2026 draft state budget, withholding endorsement of an additional Rp 4.88 trillion (US$296 million) requested by Finance Minister Sri Mulyani Indrawati, pending further efficiency reviews.