Prabowo’s Agenda: Tackling State Budget Deficit through Efficiency

During his address on the 2026 State Budget Bill, President Prabowo Subianto pledged to lead Indonesia’s state budget towards a zero-deficit position. The government’s draft budget for 2026 sets state spending at Rp 3,786.5 trillion with projected revenue of Rp 3,147.7 trillion. The fiscal deficit is targeted at Rp 638.8 trillion, equivalent to 2.48% of GDP, which will be financed through prudent, innovative, and sustainable means. President Prabowo expressed his ambition to achieve a state budget with no deficit in the future, emphasizing the need for courage and determination in eliminating budgetary leakages and seeking the support of all political forces in Indonesia. The government plans to increase creative and innovative financing to reduce reliance on the state budget and ensure flexibility in responding to global shocks. Measures will be taken to boost tax revenues, safeguard the investment climate, and provide targeted fiscal incentives to support strategic economic activities. Prabowo also highlighted the importance of efficient management of natural resources to enhance the welfare of the people.

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