The 2026 State Budget Is Still Healthy, Sri Mulyani Emphasizes Sustainable Fiscal Reform

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said that the 2026 State Revenue and Expenditure Budget (APBN) must continue to be maintained healthy and credible, by continuing to carry out fiscal reforms in order to increase income mobilization, improve spending quality and efficiency, as well as financing innovation to encourage performance and equitable economic progress.

Sri Mulyani said that in terms of state revenue, a balanced step was taken between increasing tax and tax revenues by maintaining the investment climate and environmental sustainability.

"Tax reform continues to be carried out to increase taxpayer compliance, expand tax bases, and simplify administration," he explained at the DPR plenary meeting at the Parliament Complex, Tuesday, May 20.

Sri Mulyani conveyed that the optimization of the expansion of the tax base was carried out through data and risk-based intensification and extensification, including the use of beliax in data management and tax policy improvements.

He added that taxpayer compliance will be increased through the implementation of regional-based tax potential supervision in line with the implementation of administrative reforms, including technology integration and increased cooperation between agencies or agencies.

"The implementation of the Global Taxation Agreement is also an opportunity for the expansion of the tax base through the taxation of multinational corporations that carry out cross-border transactions," he explained.

In addition, the Government also provides fiscal incentives in a directional, selective, and measurable manner for strategic sectors that support the acceleration of economic transformation so that it can continue to be carried out.

Sri Mulyani conveyed that the strengthening of PNBP was carried out through optimizing natural resources management, improving governance, innovating public services, and encouraging reform in the management of state assets.

"With various policies and efforts to improve administration and services, state revenues will increase in 2026, reaching around 11.71 percent to 12.22 percent of GDP," he said.

On the other hand, he conveyed that strengthening the quality of spending was carried out by continuing the efficiency of operational spending and reconstruction of spending to be more productive and oriented towards people's welfare.

"The national flagship program continues to be encouraged, including strengthening the implementation of MBG, building superior schools and schools, building food barns, and the Red and White Village/Sub-District Cooperatives will be supported through effective shopping instruments," he said.

Sri Mulyani said that the energy and non-energy subsidy policy will also continue to be refined in terms of targeting accuracy, in line with improving data accuracy for social protection programs and improving the mechanism for distributing social assistance, including strengthening empowerment-based social welfare.

In addition, the Government has also improved the synergy and harmonization of central and regional policies to improve the quality of regional spending to be more productive, improve the quality of public services, and strengthen regional independence.

"Through strengthening the quality of spending, state spending in 2026 will be allocated in the range of 14.19 percent to 14.75 percent of GDP," he said.

In dealing with global pressure and overcoming national structural problems, he said that fiscal policy was designed to remain expansionary, directed, and measurable with a fiscal deficit of 2026 maintained in the range of 2.48 percent to 2.53 percent of GDP.

He added that the APBN or fiscal policy is very crucial to maintain economic stability through an effective and precise countercyclical strategy in terms of implementation timing, support for the business world and the community that continues to be strengthened.

"As well as fiscal sustainability which is ensured to be maintained because the state budget is a mainstay instrument from time to time from government to government until Indonesia continues to achieve the goal of the state," he added.

Sri Mulyani conveyed that fiscal financing is maintained innovatively, prudently, and sustainably to encourage the increase in government investment in the economy taken, by controlling debt ratios in safe and manageable limits.

Then, encourage the effectiveness of investment financing by empowering the roles of BUMN, BLU, and SMV synergized through the existence of Danantara, utilizing SAL to anticipate uncertainty, increasing access to investment financing and working capital and/or housing for MBR and MSMEs, as well as encouraging sustainable Government and Business Entity Cooperation (KPBU) schemes.