Indonesia Budget

Indonesia plans to sell first Asian sovereign dollar bond of 2026

The sale comes as Prabowo looks to fund a Budget deficit that risks exceeding 3% of GDP in 2026

Indonesia’s Finance Minister Purbaya Yudhi Sadewa said the deficit widened as spending was kept up to support growth amid global uncertainty.

Indonesia fiscal deficit soars to 2.9% of GDP, near legal limit

The deficit highlights rising fiscal strains for President Prabowo as he pushes growth plans amid slowing revenue

Indonesia is home to some of the wealthiest billionaires in South-east Asia, where 10 of the richest have a combined net worth of more than US$180 billion.

Rich families face tax audits as Indonesia races to plug deficit

The country’s tax ratio is among the lowest in the world, at about 10% of GDP last year

Indonesian President Prabowo Subianto's  optimism rests on three assumptions: that waste (corruption) can be eliminated, that tax revenues can grow without burdening the economy, and that state-owned enterprises can deliver unprecedented profits to the treasury.

Prabowo’s zero-deficit delusion

Without deeper tax reform, spending restraint or realistic dividend expectations, a balanced Budget is mathematically unattainable

The budget, approved by parliament, assumes economic growth of 5.4 per cent, compared with a 2025 target of 5.2 per cent, and targets revenue of  US$189.29 billion, about 10 per cent higher than in 2025.

Indonesia parliament passes Prabowo's US$231 billion budget for 2026

This includes increased spending of US$231.5 billion and a fiscal deficit of 2.68%

Indonesia has rules limiting the annual budget deficit at 3% of GDP and keeping public debt at no more than 60% of GDP, Dr Purbaya told a press conference, while adding these numbers are “arbitrary”.

No need for changes in Indonesia’s fiscal rules: finance minister

The country is in better fiscal health than some other countries, adds Purbaya

Indonesia’s newly appointed Finance Minister Purbaya Yudhi Sadewa will increase the budget gap to 2.68 per cent of gross domestic product, higher than the 2.48 per cent proposed by the president.

Indonesia raises budget deficit target to fund region transfers

The higher spending plan stems from the increased allocation of transfer funds to regional administrations

Indonesian Finance Minister Sri Mulyani said the government may use excess cash accumulated from previous years to fund a higher deficit, which could reduce the need to issue more debt in the second half of 2025.

Indonesia’s 2025 fiscal deficit target revised upwards to 2.78% of GDP, minister says

The 2.78% figure would represent the highest fiscal deficit for Indonesia since 2021

Indonesia’s current account is closely monitored by investors and policymakers because it is a source of vulnerability, making the country susceptible to capital outflows.

Indonesia's Q1 current account deficit narrows to 0.1 per cent of GDP

A narrower deficit may provide more space for the central bank to relax monetary policy

Indonesia’s President Prabowo Subianto has pledged to lift the country's annual growth to 8 per cent by the end of his term in 2029.

Indonesia expects 2026 GDP growth of between 5.2%-5.8%

[JAKARTA] Indonesia’s government expects economic growth in 2026 to be between 5.2 per cent and 5.8 per cent, while the budget deficit is seen between 2.48 per cent and 2.53 per cent of GDP, finance m...