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View all search resultsGovt banks on 'ambitious' revenue growth in 2026 budget
President Prabowo Subianto has increased the allocation for his flagship free meals program by nearly threefold from this year’s budget, reaching Rp 335 trillion in 2026.
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President Prabowo Subianto delivers his annual State of the Nation address during the People's Consultative Assembly (MPR) plenary meeting at the Senayan legislative complex in Jakarta on Aug. 15, 2025, ahead of the country's 80th Independence Day. (AFP/Pool/Bay Ismoyo)
P
resident Prabowo Subianto has set an “ambitious” revenue target for his first-ever state budget amid the country’s flagging tax collection, as he seeks to raise spending for his flagship programs.
During the state budget address on Friday, Prabowo highlighted that the budget was designed to strengthen the country’s “food, energy, economy and defense” resilience and to support the vision of transforming Indonesia into a strong, prosperous and independent nation.
The plan is to ramp up state revenue by 9.8 percent to Rp 3.14 quadrillion (US$194.5 billion) from the expected Rp 2.86 quadrillion this year, according to the latest Finance Ministry projections.
Meanwhile, the country recorded only modest revenue growth of 5.6 percent in 2023 and 2.4 percent last year. This year’s revenue is projected to grow by just 0.5 percent as tax revenue, which makes up the bulk of state income, is projected to fall short by about Rp 82 trillion, reaching just 94.9 percent of the Rp 2.71 quadrillion target.
To reach next year’s pace, Finance Minister Sri Mulyani Indrawati revealed in a press conference on Friday that tax revenue must grow by 13.5 percent year-on-year (yoy), which she described as “rather high and ambitious.”
However, she suggested the target was achievable given the budget’s gross domestic product (GDP) growth and inflation assumptions of 5.4 percent and 2.5 percent, respectively. The GDP growth projection represents an acceleration from the 5.12 percent recorded in the second quarter of this year.
