January 8, 2026 | 11:25 pm
TEMPO.CO, Jakarta - The Indonesian government has publicized the State Budget (APBN) for the 2026 Fiscal Year. Based on the law, the new debt to be raised is Rp832.2 trillion, an increase from the 2025 debt financing target of Rp775.9 trillion.
The debt draw is part of the budget financing to cover the 2026 APBN deficit, which is targeted at Rp689.1 trillion. "Debt financing of Rp 832,208,898,829," reads Article 23 paragraph 2a of Law Number 17 of 2025.
The increased financing results from the widening APBN deficit. The deficit target has risen from Rp616 trillion in 2025 to Rp689 trillion this year.
This year's expenditure is predicted to remain aggressive amid weakening revenues. The government has allocated substantial funds for priority programs, such as the Free Nutritious Meals (MBG) set at Rp335 trillion from the APBN.
Andalas University economist Syafruddin Karimi stated that major government programs like the MBG and the food self-sufficiency agenda in 2026 are difficult to operate without additional costs if revenues are weak and expenditures are significant. "Because the 2026 APBN itself already includes a deficit that requires financing," he said.
He stated that the realistic way to restrain the need for additional debt beyond the plan is to strictly regulate program stages, such as forcing MBG spending to adhere to supply chain readiness, reducing procurement leakage, and shifting food expenditure from reactive patterns to productive investments.
Meanwhile, the Finance Ministry reported that debt financing realization throughout 2025 reached Rp736.3 trillion. This realization reached 94.9 percent of the 2025 debt target of Rp775.9 trillion.
This debt draw is part of the budget financing. The total realization of budget financing is Rp744 trillion. "This is divided into debt financing of Rp 736.3 trillion or 94.9 percent of the APBN and non-debt financing amounting to Rp 7.7 trillion," said Deputy Minister of Finance Thomas Djiwandono in the APBN Kita press conference in Jakarta, Thursday, January 8, 2026.
Read: Indonesia's 2025 Tax Revenue Misses Target by Rp271 Trillion
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