WNAM REPORT: The Indonesian government has set a state revenue target of 196.73 billion USD in the 2026 draft state budget (RAPBN), up 9.8% from this year’s figure.
At a recent press conference on the draft state budget and fiscal year for 2026 in Jakarta, Minister of Finance Sri Mulyani Indrawati said that budget plan for next year will focus on education, health, housing, and security, with record spending. In addition, Indonesia also prioritises the issues of social aging, community welfare, and security, which shows that the budget adjustment is aimed at protecting people and building a sustainable foundation.
Sri Mulyani said the budget revenue figure is “ambitious,” as the highest budget revenue growth in the past three years was only 5.6%, while in 2025 it is expected to increase by only 0.5%.
To this end, Indonesia plans to accelerate reforms in three areas: tax, customs and excise, and non-tax state revenue (PNBP).
Sri Mulyani also said that the 2026 draft state budget is expected to have a deficit of 638.8 trillion IDR (39.93 billion USD), equivalent to 2.48% of GDP, due to expenditure exceeding revenue. In the RAPBN, the Indonesian government plans to spend 236.66 billion USD on public expenditure. Taxes are still identified as the main source of revenue with 147.36 billion USD, up 13.5% compared to 2025. Revenue from customs and excise is expected to reach 334.3 trillion IDR (20.89 billion USD), up 7.7%.
According to the Finance Minister, Indonesia’s 2026 spending will focus on key programmes: food security 164.4 trillion IDR (10.28 billion USD); energy security 402.4 trillion IDR (25.15 billion USD); free nutritional meals 335 trillion IDR (20.94 billion USD), reaching 82.9 million people; education 757.8 trillion IDR (47.36 billion USD); health 244 trillion IDR (15.25 billion USD); and security and defence 179.4 trillion IDR (11.21 billion USD).
Sri Mulyani affirmed that although the 2026 budget revenue target is “very challenging”, it is still feasible if reforms are implemented synchronously and drastically.
