#State Budget (APBN)
Government eyes strong year-end growth boosted by holiday demand, budget absorption
The government has set an upbeat target for Indonesia’s economic growth in the final quarter of 2025, projecting an expansion of between 5.4 and 5.6 percent as household spending and government expenditure peak ahead of the year-end holidays.
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.
Nusantara Capital authority secures Rp225 trillion in investments
The Nusantara Capital (IKN) Authority has announced a significant financial milestone, marking one year under President Prabowo Subianto’s administration, confirming that the development of Indonesia’s new capital is now supported by a strong and increasingly independent financial foundationand no longer reliant solely on state funding.
Purbaya reconsiders VAT cut, citing potential Rp70 T revenue loss per 1% reduction
Finance Minister Purbaya Yudhi Sadewa said he is carefully reviewing the government’s plan to lower the value-added tax (VAT) rate, noting that every one percentof tax reduction could cost the State as much as Rp70 trillion (US$4.24 billion) in lost revenue.
Finance Minister calls for full utilization of free nutritious meal budget
Minister of Finance, Purbaya Yudhi Sadewa, has emphasized that the government will continue to push for the full utilization of the Free Nutritious Meal (MBG) budget, warning that unspent funds could burden state finances.
Government-House agree on Rp43 trillion increase for 2026 regional transfers
The Ministry of Finance and the House of Representatives’ (DPR) Budget Committee (Banggar) have agreed to raise the allocation for regional transfers (TKD) in the 2026 state budget by Rp43 trillion (US$2.6 billion).
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).
House approves 2026 State Budget with deficit at 2.68% of GDP, growth 5,4%
The House of Representatives (DPR) on Tuesday, Sept. 23, 2025, approved the 2026 State Budget (APBN) bill into law during its fifth plenary session of the 2025–2026 sitting period.
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.
House commission approves Rp 21.67 trillion budget for energy ministry in 2026
The House of Representatives’ energy and investment Commission XII has approved the 2026 budget allocation for the Ministry of Energy and Mineral Resources (ESDM) at Rp21.67 trillion (US$1.3 billion), a sharp increase of 166.87 percent from the initial ceiling of Rp8.12 trillion.
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.