Indonesia Unveils 2026 Budget: Higher Spending, Bigger Deficit, and Boost for Free Meals & Defense

Tuesday, September 23, 2025

SAEDNEWS: Indonesia’s parliament will vote on President Prabowo Subianto’s proposed 2026 budget, which outlines spending of 3,842.7 trillion rupiah ($231.5 billion).

Indonesia Unveils 2026 Budget: Higher Spending, Bigger Deficit, and Boost for Free Meals & Defense

Indonesia’s 2026 budget forecasts a fiscal deficit of 2.68% of GDP, slightly lower than this year’s 2.78%, while projecting economic growth of 5.4%, Reuters reported.

Revenue is targeted at 3,153.6 trillion rupiah, about 10% higher than 2025 expectations, and total spending rises 9%, reflecting an ambitious expansion of government programs.

A major highlight is Prabowo’s flagship free meals program, now set at 335 trillion rupiah, nearly double this year’s allocation, benefiting students and pregnant women. Defense spending also sees a substantial boost, up 37% to 335.3 trillion rupiah.

Despite higher spending, the projected deficit remains well below the legal 3% limit, signaling a bold but measured approach to fiscal policy for 2026.