September 23, 2025 | 07:34 pm
TEMPO.CO, Jakarta - Indonesian House of Representatives (DPR) has officially approved the 2026 State Budget (APBN) during a plenary session held on Tuesday, September 23, 2025.
Alongside the budget, lawmakers also endorsed the macroeconomic assumptions for 2026, including a projected economic growth rate of 5.4 percent.
Chair of the DPR Budget Committee, Said Abdullah, emphasized the importance of these assumptions in supporting government efforts to boost long-term economic growth. “The government targets a medium-term growth of around 7-8 percent.
Therefore, the 5.4 percent growth assumption serves as a critical foundation for future economic planning,” Said stated during the session at the Parliament Complex in Jakarta.
In addition to economic growth, the DPR and government agreed on key macroeconomic parameters: inflation at 2.5 percent; an exchange rate of Rp 16,500 per US dollar; a 10-year Government Bond (SBN) interest rate of 6.9 percent; Indonesian crude oil priced at US$70 per barrel; crude oil lifting of 610,000 barrels per day; and natural gas lifting of 984,000 barrels per day.
The budget posture for 2026 was also approved. Total state revenue is projected at Rp3,153.58 trillion, comprising tax revenue of Rp2,693.71 trillion, non-tax state revenue (PNBP) of Rp459.2 trillion, and grants of Rp0.66 trillion.
State expenditure is set at Rp3,842.73 trillion, which includes central government spending of Rp3,149.73 trillion and transfers to regions of Rp692.99 trillion.
This results in a primary balance of Rp 89.71 trillion and a budget deficit of Rp689.15 trillion, equivalent to 2.68 percent of GDP. Total financing is also projected at Rp 689.15 trillion.
Said highlighted several adjustments in budget allocations compared to the government’s initial proposal. “Discussions with the government led to changes in allocations to better address priorities,” he explained.
Notable adjustments include an increase in excise revenue targets by Rp1.7 trillion, an additional Rp4.2 trillion in revenue from non-tax state revenue (PNBP) from six major ministries/agencies, an increase in ministry and agency spending by Rp12.3 trillion, a Rp941.6 billion boost in the Other Expenditure Management Program, and a Rp43 trillion rise in transfers to regional governments.
These updates reflect a more targeted allocation of resources aimed at supporting government programs and regional development while maintaining fiscal discipline in 2026.
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