How Indonesian Gov't Keeps Budget Deficit Below 3%

4 hours ago 12

March 20, 2026 | 09:08 am

TEMPO.CO, Jakarta - The Indonesian government is seeking to strengthen fiscal resilience amidst global dynamics, including energy and commodity price hikes, said Coordinating Minister for Economic Affairs Airlangga Hartarto. Fiscal resilience is reinforced by maintaining a state budget deficit under 3 percent. 

"In accordance with the directives from the Full Cabinet Meeting and after consultations with technical ministries," said Airlangga in an official statement on Thursday, March 19, 2026.

The statement was made after a meeting with President Prabowo Subianto at the Presidential Palace Complex, Jakarta.

Airlangga said the government is preparing budget efficiency measures across ministries and state agencies.

The Indonesian government is also looking to up coal production volume by adjusting the Work Plan and Budget (RKAB) to anticipate the rising prices of fuel and other commodities. 

Airlangga mentioned that the government is floating the plan to adjust export tax policies on coal to improve state revenue, in line with the trend of rising commodity prices.

In the energy sector, the sovereign wealth fund Danantara has been tasked with speeding up the conversion of diesel power plants (PLTD) into solar plants (PLTS) to save power amid the high oil prices.

Indonesia is also considering a one-day work from home (WFH) every workweek to cut fuel use up to one-fifth of the regular expenses. 

The government is currently finalizing the technical aspects of this policy. The WFH implementation is expected to apply not only to government employees but also to private and regional government employees. 

The WFH policy is expected to start after Eid al-Fitr.

Read: Indonesia Prepares WFH Policy to Cut Fuel Consumption

Click here to get the latest news updates from Tempo on Google News


Indonesia Prepares WFH Policy to Cut Fuel Consumption

12 jam lalu

Indonesia Prepares WFH Policy to Cut Fuel Consumption

Indonesian government aims to cut fuel consumption through a work-from-home policy after the US-Israel war against Iran triggered volatile oil prices.


Indonesia Officially Sets Eid al-Fitr for March 21

13 jam lalu

Indonesia Officially Sets Eid al-Fitr for March 21

Indonesia's Ministry of Religious Affairs has officially declared that Eid al-Fitr, marking 1 Shawwal 1447 Hijri, will fall on Saturday, March 21.


Indonesian Activist Palti Hutabarat Sent Dog's Head in Suspected Terror

22 jam lalu

Indonesian Activist Palti Hutabarat Sent Dog's Head in Suspected Terror

Palti Hutabarat, a social media activist, received a terrifying threat in the form of a dog's head sent by an unknown person to the yard of her parents' house in Namo Rambe District, Deli Serdang Regency, North Sumatra


Indonesia to Hold Isbat Session Today to Set Eid Date

23 jam lalu

Indonesia to Hold Isbat Session Today to Set Eid Date

The Indonesian Ministry of Religious Affairs will hold the session of isbat to determine the beginning of Syawal 1447 Hijriah today on March 19, 2026.


Renowned Indonesian Music Composer Iwan Gunawan Passes Away

1 hari lalu

Renowned Indonesian Music Composer Iwan Gunawan Passes Away

Composer and a leading figure in contemporary gamelan music in Indonesia, Iwan Gunawan, reportedly passed away in the Netherlands on Monday, March 16, 2026. Besides participating in international music festivals, Iwan also taught music art education at the Indonesian University of Education (UPI) in Bandung.


Indonesia Prepares Case to Show Compliance in U.S. Trade Probe

1 hari lalu

Indonesia Prepares Case to Show Compliance in U.S. Trade Probe

Indonesia is preparing its response to a U.S. trade probe over alleged unfair trade practices and forced labor, an official said.


Analyst Questions U.S. Trade Probe Into Indonesia Under Section 301

1 hari lalu

Analyst Questions U.S. Trade Probe Into Indonesia Under Section 301

The U.S. has launched a Section 301 probe into 16 economies, including Indonesia, over alleged overcapacity and unfair trade practices.


Indonesia Gathers Evidence for US Trade Investigation

1 hari lalu

Indonesia Gathers Evidence for US Trade Investigation

Several countries are suspected of carrying out unfair trading practices or harming U.S. economic interests.


Indonesia's Fisheries Exports Decline as Iran War Disrupts Trade

1 hari lalu

Indonesia's Fisheries Exports Decline as Iran War Disrupts Trade

The decline in fishery export volume has occurred due to global supply chain constraints.


Indonesia Weighs Ministerial Salary Cuts to Boost Savings

2 hari lalu

Indonesia Weighs Ministerial Salary Cuts to Boost Savings

State Secretary Minister Prasetyo Hadi confirms the Indonesian government is studying salary cuts for cabinet members to ensure budget efficiency.


Read Entire Article
Pemilu | Tempo | |