{"id":52024,"date":"2025-08-15T05:08:25","date_gmt":"2025-08-15T09:08:25","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/indonesia-targets-smaller-budget-deficit-in-2026-amid-ambitious-growth-plans\/52024\/"},"modified":"2025-08-15T05:08:25","modified_gmt":"2025-08-15T09:08:25","slug":"indonesia-targets-smaller-budget-deficit-in-2026-amid-ambitious-growth-plans","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/indonesia-targets-smaller-budget-deficit-in-2026-amid-ambitious-growth-plans\/52024\/","title":{"rendered":"Indonesia Targets Smaller Budget Deficit in 2026 Amid Ambitious Growth Plans"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>Indonesia plans to narrow its <strong>budget deficit<\/strong> to a range of <strong>2.48% to 2.53% of Gross Domestic Product (GDP)<\/strong> in <strong>2026<\/strong>, a reduction from the revised <strong>2.78% of GDP<\/strong> projected for <strong>2025<\/strong>.<\/li>\n<li>The government and parliament have endorsed an ambitious <strong>economic growth target<\/strong> of <strong>5.2% to 5.8%<\/strong> for <strong>2026<\/strong>, underpinned by an <em>expansive yet targeted fiscal policy<\/em>.<\/li>\n<li>This 2026 budget, the first under President Prabowo Subianto&#39;s administration, focuses on strengthening national resilience through investments in <em>food and energy self-sufficiency<\/em>, <em>education quality<\/em>, <em>national industrialization<\/em>, and key social programs like the <em>free meals initiative<\/em>.<\/li>\n<\/ul>\n<p>Indonesia&#39;s government is set to propose a <strong>budget deficit<\/strong> of <strong>2.48% to 2.53% of GDP<\/strong> for <strong>2026<\/strong>, demonstrating a strategic effort to balance economic expansion with fiscal prudence. This projection, presented by Finance Minister Sri Mulyani Indrawati, marks a decrease from the <strong>2.78% of GDP<\/strong> deficit anticipated for <strong>2025<\/strong>. The move signals the nation&#39;s commitment to sound fiscal management amidst global economic uncertainties.<\/p>\n<p>The proposed budget aims to support an <em>optimistic economic growth target<\/em> of <strong>5.2% to 5.8%<\/strong> in <strong>2026<\/strong>. This growth is expected to be driven by an <em>expansive fiscal policy<\/em> that is simultaneously <em>targeted and measurable<\/em>, ensuring economic momentum while maintaining sustainability. State revenues are projected to reach between <strong>11.71% and 12.31% of GDP<\/strong>, or approximately <strong>Rp3.094 trillion to Rp3.114 trillion<\/strong> (US$199 billion to US$201 billion). Concurrently, state expenditures are estimated at <strong>14.19% to 14.83% of GDP<\/strong>, equivalent to <strong>Rp3.800 trillion to Rp3.820 trillion<\/strong> (US$241 billion to US$243 billion).<\/p>\n<p>Under President Prabowo Subianto&#39;s leadership, the <strong>2026 budget<\/strong> prioritizes several key areas designed to bolster national resilience and prosperity. These include achieving <em>food and energy self-sufficiency<\/em>, enhancing the <em>quality of education<\/em>, and accelerating <em>national industrialization<\/em>. Significant social programs, such as the flagship <em>free meals program<\/em> for an estimated <strong>83 million students and pregnant women<\/strong>, are also central to the fiscal plan.<\/p>\n<p>Other macroeconomic assumptions for <strong>2026<\/strong> include an inflation target of <strong>1.5% to 3.5%<\/strong>, an exchange rate of <strong>Rp16,500 to Rp16,900 per US dollar<\/strong>, and crude oil prices averaging between <strong>US$60 and US$80 per barrel<\/strong>. The government also aims to reduce the poverty rate to <strong>6.5% to 7.5%<\/strong> (with extreme poverty at <strong>0% to 0.5%<\/strong>) and the open unemployment rate to <strong>4.44% to 4.96%<\/strong>. While the budget reflects optimism, officials acknowledge potential challenges from global economic pressures and a relatively low tax ratio, emphasizing the need for coordinated fiscal and monetary policies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Indonesia plans to narrow its budget deficit to a range of 2.48% to 2.53% of Gross Domestic Product [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[1008,4765,5414,5596,6026,7888,8899,8900],"class_list":["post-52024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-gdp","tag-fiscal-policy","tag-economic-growth","tag-indonesia","tag-macroeconomics","tag-budget-deficit","tag-prabowo-subianto","tag-sri-mulyani-indrawati"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/52024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=52024"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/52024\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=52024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=52024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=52024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}