Budget Committee Chairman Reveals 2026 Economic Growth Target Close to Agreed Macro Posture

JAKARTA - Said Abdullah, Chairman of the House of Representatives Budget Committee (Banggar), assessed that the target for the 2026 State Budget (APBN) will not differ significantly from the macroeconomic posture previously agreed upon between the government and the DPR Budget Committee.

He stated that economic growth is projected in the range of 5.3 percent–5.4 percent, and is confident it will be closer to the upper figure, due to the countercyclical nature of state spending.

According to him, the government will continue to encourage state spending to maximize its impact on society.

"If growth remains around 5 percent–5.4 percent, we hope it can reach 5.3 percent–5.4 percent, as mentioned in President Prabowo's (Prabowo's) financial note speech," he said at the Parliament Complex, Senayan, Jakarta, Friday, August 15.

Meanwhile, in terms of state revenue, he estimates it will be in the range of IDR 3,145 trillion to IDR 3,147 trillion, and will not be far from the assumptions agreed upon in the discussions on the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF).

Meanwhile, Said stated that the budget deficit is predicted to be set at the lower limit, at around 2.48 percent of GDP.

Said assessed that President Prabowo Subianto's Financial Note speech this year will be in the spotlight, especially since the government transition period has only been underway for about 10 months.

"If we look at who is working, because this transition has only been underway for almost 10 months, there are signs of significant improvement, we must acknowledge," Said said on Friday, August 15.

He explained that national economic growth is showing a positive trend, with growth expected to reach 4.87 percent in the first quarter of 2025, increasing to 5.12 percent in the second quarter of 2025.

Said hopes that entering the second year of the Prabowo Subianto administration will bring about real change, particularly in improving the quality of human resources (HR).

"Honestly, we are focused on HR, so whatever efforts we make as a government, the key is always how to improve our HR to become superior," he said.

Said added that in the upcoming Financial Note speech, the focus should be directed towards fundamental human development agendas, as stated in the long-term development vision (Asta Cita), namely education for all, improving the quality of inclusive health services, and providing free nutritious meals (MBG) for students.

He explained that if these programs are implemented simultaneously and on a large scale, Indonesia's Incremental Capital Output Ratio (ICOR) can be expected to improve.

"This simultaneous implementation means we hope our ICOR will reach a level at least comparable to Vietnam's. If Vietnam is currently at 4.6, we are at 6.1, 6.2, then with the acceleration of the government's program, that can be achieved," he stressed.