Prabowo’s zero-deficit delusion
Without deeper tax reform, spending restraint or realistic dividend expectations, a balanced Budget is mathematically unattainable
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WHEN President Prabowo Subianto addressed Indonesia’s parliament on Aug 15, 2025, to present his draft 2026 state Budget, his confidence was unmistakable.
He proposed a total spending of 3,786.5 trillion rupiah (S$300 billion) and revenues of 3,147.7 trillion rupiah, which would have resulted in a deficit of 638.8 trillion rupiah or around 2.5 per cent of projected gross domestic product. He described these figures as proof of “prudent and sustainable” fiscal management.
Then came his boldest claim: By 2027 or 2028, Indonesia could achieve a balanced Budget, a fiscal year with zero deficit.
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