House of Representatives Passes 2026 State Budget Law, Here Are the Structure and Targets
The Indonesian House of Representatives (DPR) has officially passed the 2026 State Budget Bill (RUU APBN 2026) into law during the 5th Plenary Session of the First Sitting Period for 2025–2026 on Tuesday (23/9).
The ratification followed the presentation of the final report and mini faction views by Said Abdullah, Chair of the DPR Budget Committee (Banggar). “The government needs to be agile, creative, and innovative in utilizing fiscal strength in the 2026 State Budget,” said Said in front of the parliament members, as quoted from Kontan.co.id.
Of the total factions, eight parties expressed approval: PDIP, Golkar, Gerindra, NasDem, PKB, PKS, PAN, and the Democrat Party. The Speaker of the House, Puan Maharani, then asked for the assembly’s agreement. After a resounding “agree” from the members, the gavel was struck to mark the bill’s approval.
“Can the 2026 State Budget Bill be approved to become law?” asked Puan, which was again met with a unanimous “agree” from the council members, followed by the gavel strike.
Finance Minister Purbaya Yudhi Sadewa, who was present at the plenary session, expressed appreciation to the DPR for what he called a constructive discussion process. “On behalf of the government, we extend our highest appreciation to the leadership and all members of the House for their support and approval in passing the 2026 State Budget Bill into law. The process has been very constructive and has accommodated various public aspirations and expectations,” he said, as quoted from cnnindonesia.com.
Macroeconomic Assumptions in the 2026 State Budget
The government and the DPR agreed on the following key macroeconomic assumptions for the 2026 State Budget:
- Economic growth: 5.4%
- Inflation: 2.5%
- Exchange rate: IDR 16,500 per US dollar
- 10-year government bond interest rate: 6.9%
- Oil price: USD 70 per barrel
- Oil lifting target: 610 thousand barrels per day
- Gas lifting target: 984 thousand barrels of oil equivalent per day
Final 2026 State Budget Structure
The final posture of the 2026 State Budget, after revisions by the DPR’s Budget Committee, is as follows:
- State Revenue: IDR 3,153.6 trillion
- Tax revenue: IDR 2,693.7 trillion
- Taxes: IDR 2,357.7 trillion
- Customs and excise: IDR 336 trillion
- Non-tax state revenue (PNBP): IDR 459.2 trillion
- Grants: IDR 0.66 trillion
- State Expenditure: IDR 3,842.7 trillion
- Central government spending: IDR 3,149.7 trillion
- Ministry/Agency spending: IDR 1,510.5 trillion
- Non-ministry/agency spending: IDR 1,639.1 trillion
- Transfers to regions (TKD): IDR 693 trillion
- Primary balance: IDR 89.7 trillion
- Budget deficit: IDR 689.1 trillion or 2.68% of GDP
- Financing requirement: IDR 689.1 trillion
