Indonesia will spend around Rp1,300 trillion from the state budget in the fourth quarter of 2026, Finance Minister Suahasil said on Monday, up from Rp1,200 trillion in the same quarter of 2025. Speaking at a press conference after a limited economic meeting at the Merdeka Palace in Jakarta, he also confirmed the government’s deficit outlook for 2026 at 2.85 percent of GDP, below the 3 percent threshold.
Efficiency without cuts
Suahasil said the government is still seeking budget efficiency for the rest of 2026. He stressed that the aim is not to cut the budget. The goal, he said, is to deliver the planned output through more efficient implementation.
The government treats this as a routine year-end measure. Programs will not be halted to achieve it.
Deficit held at July level
Suahasil said the deficit remains at the figure the government reported to the Budget Committee last July. That figure is about 2.85 percent of GDP.
The free nutritious meals programme, run by the National Nutrition Agency (BGN), was cited as an example of efficiency gains. Food assistance began in the fourth quarter and is expected to support consumption and government spending’s contribution to growth. Suahasil described global economic conditions as volatile.
Related: Indonesia's Nazar warns ageing risks state revenue, spending
