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View all search resultsAnalysis: Transparency concerns cloud Indonesia's 2026 budget
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Finance Minister Purbaya Yudhi Sadewa's face is displayed on screen during his speech in the main hall of the Indonesia Stock Exchange (IDX) building in Jakarta on Dec. 3, 2025. (JP/Deni Ghifari)
I
ndonesia entered 2026 with an unusual fiscal blind spot. In the first week of the new year, the State Budget (APBN) 2026 Law had yet to be made publicly available, only appearing on the same day the Finance Ministry released its report on the 2025 APBN performance. More strikingly, Presidential Regulation (Perpres) No. 118/2025, which details the APBN and operationalizes the budget, has yet to surface at all.
Law No. 17/2025 on APBN 2026 shows that President Prabowo Subianto signed the document on Oct. 22, 2025, shortly after the House of Representatives approved the draft budget in a September 2025 plenary session. The draft APBN itself was presented to the House in August but remained inaccessible to the public until early January 2026. This stands in contrast to claims from the Finance Ministry that the implementing regulation, Perpres No. 118/2025, has already been issued. To date, however, even this regulation has not been publicly disclosed, with its existence confirmed only through official statements rather than accessible documentation.
The APBN law is usually published well before the turn of the year, allowing ministries, regional governments, businesses and financial markets sufficient time to recalibrate spending plans and adjust expectations. For example, the APBN 2025 Law was promulgated in the final quarter of 2024 and the related Perpres was signed in early December 2024, followed by the issuance of Budget Implementation Lists (DIPA) to ministries and agencies before year-end.
The Perpres typically sets out detailed targets for tax revenue, covering income tax, value-added tax (VAT), land and building tax (PBB), excise duties and import and export duties, alongside comprehensive breakdowns of state expenditure. These include budget ceilings by ministries and agencies, program- and activity-level allocations, transfers to regional governments (TKD) and financing plans such as government debt issuance. On this basis, the government issues the DIPA, which enables ministries and agencies to prepare salary payments and begin pre-tender processes for budgeted spending.
According to the 2026 APBN, state revenue is targeted at Rp 3.15 quadrillion (US$187.05 million), comprising tax revenue of Rp 2.69 quadrillion, nontax state revenue (PNBP) of Rp 459.19 trillion and grant revenue of Rp 666.27 billion. The tax revenue target consists of income tax amounting to Rp1.21 quadrillion; VAT and luxury goods sales tax (PPnBM) of Rp 995.27 trillion; PBB of Rp 26.13 trillion; excise duties of Rp 243.53 trillion; other taxes of Rp 126.93 trillion; import duties of Rp 49.9 trillion; and export duties of Rp 42.56 trillion.
On the expenditure side, total government spending is set at Rp 3.84 quadrillion, with central government spending accounting for Rp 3.15 quadrillion and TKD amounting to Rp 692.99 trillion. This implies a budget deficit target of Rp 689.15 trillion.
These targets appear ambitious when set against the realization of the 2025 APBN as of Dec. 31, 2025. Tax revenue reached only Rp 2.22 quadrillion, while PNBP stood at Rp 534.1 trillion and grant revenue at Rp 4.3 trillion. Government spending totaled Rp3.45 quadrillion, comprising central government spending of Rp 2.6 quadrillion and TKD of Rp 849.99 trillion, after aggressive efficiency measures were implemented throughout the year.
