Indonesia’s government has announced a Rp832.2 trillion debt plan for the 2026 Fiscal Year, an increase from the Rp775.9 trillion target set for 2025, to cover a projected budget deficit.
2026 Budget Deficit and Financing
The increased debt draw is intended to finance the 2026 State Budget (APBN) deficit, which is targeted at Rp689.1 trillion. Article 23 paragraph 2a of Law Number 17 of 2025 stipulates the Rp 832,208,898,829 debt financing amount.
The widening APBN deficit is the primary driver of the increased financing need, rising from Rp616 trillion in 2025 to Rp689 trillion this year.
Government expenditure is expected to remain substantial, with significant allocations for priority programs, including Rp335 trillion earmarked for Free Nutritious Meals (MBG) from the APBN.
Andalas University economist Syafruddin Karimi noted that large-scale programs like MBG and food self-sufficiency initiatives will be challenging to implement effectively without additional costs, given potential revenue weaknesses and significant expenditures. “Because the 2026 APBN itself already includes a deficit that requires financing,” he said.
Karimi suggested that controlling additional debt beyond the current plan requires strict regulation of program implementation, such as ensuring MBG spending aligns with supply chain readiness, reducing procurement inefficiencies, and shifting food expenditure towards productive investments.
Debt Realization in 2025
The Finance Ministry reported that debt financing realization throughout 2025 reached Rp736.3 trillion, representing 94.9 percent of the Rp775.9 trillion target. Total budget financing realization for 2025 amounted to Rp744 trillion, comprised of Rp736.3 trillion in debt financing and Rp7.7 trillion in non-debt financing.
Deputy Minister of Finance Thomas Djiwandono announced these figures during the APBN Kita press conference in Jakarta on Thursday, January 8, 2026.
Discover more from Archyworldys
Subscribe to get the latest posts sent to your email.
