Prabowo Aspires To State Budget Without A Deficit In 2027 Or 2028

JAKARTA - President Prabowo Subianto expressed his desire that the State Revenue and Expenditure Budget (APBN) in 2027 or 2028 no longer record a deficit.

This was conveyed by President Prabowo Subianto in a State Speech in the context of Submission/District on the Bill on the State Budget for Fiscal Year 2026 along with his Financial Note and Supporting Documents, Friday, August 15.

"My hope is that one day whether in 2027 or 2028, I want to stand in front of this assembly, on this podium, to convey that we have a state budget that has no deficit at all," he said.

He explained that the deficit-free state budget target would be pursued through increased efficiency in state spending

Prabowo said that for 2026, the government set a projected RAPBN deficit of 2.48 percent for Gross Domestic Product (GDP), or around Rp. 638.8 trillion. This figure is lower than the deficit target in the 2025 State Budget which is 2.53 percent of GDP and the deficit outlook this year is 2.78 percent of GDP or around Rp. 662 trillion.

He emphasized that the achievement of the deficit target will be supported by prudent, innovative, and sustainable financing

"And the government that I lead promises that in front of this assembly, we will continue to carry out efficiency so that this deficit will be suppressed as little as possible," he said.

He said we must have the courage and determination to remove and suppress all forms of leakage in state management.

"For that I ask for the support of all political forces in Indonesia. Our country is large, our country is prosperous. If we manage it well, everyone will feel it, everyone will enjoy it," he said.

Prabowo said that the Government will encourage the development of creative and innovative financing more massively, so that it does not depend entirely on the state budget.

He added that the APBN will be designed to remain flexible in order to be able to adapt and respond to various economic shocks, so that the APBN must be maintained so that it remains healthy and credible through optimizing income, improving spending quality, and financing innovation.

According to him, optimizing state revenues must be carried out consistently, such as taxes which are an instrument of justice for redistribution of income so that those who are able to afford it are obliged to pay taxes, while those who are underprivileged will be assisted.

"Tax revenues will continue to be increased, while still protecting the investment climate and the sustainability of the business world. Fiscal incentives are still provided in a directional and measurable manner, to support strategic economic activity," he said.

The total state expenditure in the 2026 RAPBN is targeted to reach IDR 3,786.5 trillion, an increase compared to the 2025 State Budget which amounted to IDR 3,621.3 trillion, and also 9.84 percent higher than this year's outlook for expenditure of IDR 3,527.5 trillion.

Meanwhile, state revenues in the 2026 RAPBN are targeted at IDR 3,147.7 trillion, higher than the 2025 APBN target of IDR 3,005.1 trillion, and an increase of 9.84 percent from this year's projected state revenue which reached IDR 2,865.5 trillion.