Indonesia State Budget Faces Rp 600 Trillion Revenue Gap in Final Two Months of 2026
Indonesia must collect more than Rp 600 trillion in state revenue over November and December 2026 to meet its annual targets, while simultaneously managing roughly Rp 990 trillion in remaining state spending. Suahasil Nazara disclosed the fiscal position on Tuesday, November 3, 2026, following a meeting at the Presidential Palace in Jakarta.
The remaining spending obligation accounts for about 25.76 percent of the total Rp 3.842,7 triliun state expenditure ceiling outlined in the 2026 State Budget Law. Finance Ministry figures show that state revenue reached Rp2.341,5 triliun through the end of September, marking a 25.5 percent increase compared to the previous year, while state spending hit Rp2.660,5 triliun.
President Prabowo Orders Ministries to Accelerate Year-End Budget Spending
During a meeting at the Merdeka Palace, President Prabowo Subianto instructed ministries and state institutions to accelerate their budget absorption before the fiscal year closes. Suahasil Nazara explained that year-end budget operations typically speed up and scale larger, but he stressed that spending must remain efficient and adhere to proper governance standards.
“The last two months, as usual, state budget operations tend to gas up, moving faster and larger. That is allowed, but it must remain efficient, adhere to good governance, and certainly be carried out in accordance with the output targets set when requesting that budget,” Suahasil stated.
The Ministry of Finance has formally urged all ministries and agencies to tighten internal efficiencies during the final stretch of the fiscal year. Tax collections through September included Rp1.847,7 triliun in tax revenues—supported by economic activity and the rollout of the Coretax administration system—alongside Rp240,1 triliun from customs and excise and Rp492,3 triliun in non-tax state revenue.
Government Confirms National Inflation Rate Remains Within Target Range
Addressing macroeconomic indicators, Suahasil responded to recent data from Badan Pusat Statistik (BPS) placing national inflation at 3.23 percent. He asserted that the rate sits comfortably within the government’s target range of 2.5 percent with a plus-minus 1 percent tolerance, making the maximum acceptable ceiling 3.5 percent.
“Our inflation figure yesterday was 3.2 percent. That means it is within the range we anticipated since making our economic estimations for Indonesia. That is what we call on track,” Suahasil said.
Beyond inflation, the government pointed to strengthening industrial metrics. Indonesia’s manufacturing Purchasing Managers’ Index rose in October 2026, signaling that business owners anticipate higher demand and are preparing by increasing production input purchases.
Third Quarter State Budget Realization Drives National Economic Growth
The development of the State Budget realization in the third quarter of 2026 has driven economic growth. The State Budget fulfills its role through positive revenue performance and optimal spending.
Suahasil said at the Financial System Stability Committee (KSSK) press conference for Q3-2026 at the Bank Indonesia Building, Jakarta, Tuesday (3/11/2026). Social protection programs that contributed to spending realization included National Health Insurance Contribution Assistance Recipients (PBI JKN), basic food assistance, the Family Hope Program (PKH), the Smart Indonesia Program (PIP), and the Smart Indonesia Card (KIP) for College.
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