JAKARTA - President Prabowo Subianto ensures that the government will maintain the 3 percent deficit limit of the state budget to gross domestic product (GDP) unless there is an emergency and a major crisis such as during the Covid-19 pandemic.
Quoted by ANTARA from the Indonesian Government Communication Agency (Bakom) press release, President Prabowo conveyed this in an interview, specifically with Bloomberg, which was broadcast in March 2026.
President Prabowo explained that the limit on the state budget deficit is an important instrument to maintain discipline in managing state finances. The 3 percent deficit limit has been set in Law Number 17 of 2003 concerning State Finances.
"The deficit limit is a good tool to discipline ourselves. We have no plans to change it unless there is a very big emergency like COVID-19," said President Prabowo when answering questions about the 3 percent deficit in a special interview session.
"I hope we don't have to change it," the President continued.
In the same interview session, President Prabowo also assessed that Indonesia was in a more fortunate condition than other countries, especially in the midst of the threat of an oil crisis due to the war between Iran versus Israel and the United States.
In the midst of the threat of an oil crisis due to the supply and distribution of world crude oil which is hampered by war, President Prabowo emphasized that Indonesia has several alternative resources, for example, palm oil and coal which are relatively cheap and can guarantee national energy resilience.
At the same time, the President continued that the government also continues to develop geothermal energy, solar energy, water/water power, and biofuels as alternative energy sources.
"If we can get through this, in two years we will be very efficient. [...] We will be very, very independent of external sources," said President Prabowo.
The issue related to the 3 percent deficit has come under the spotlight, especially after the rise in world crude oil prices due to the Iran vs. US and Zionist Israel war. In the plenary Cabinet Meeting last week, Coordinating Minister for the Economy Airlangga Hartarto reported to President Prabowo that it was difficult to maintain the 3 percent deficit limit if the war lasted for 6 months or 10 months.
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