State Budget Expenditure Projected to Reach Rp1,300 Trillion in Q4 2026

Indonesia’s macroeconomic situation remains stable amid global economic dynamics, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

Airlangga made the statement following a meeting with President Prabowo Subianto at Merdeka Palace in Jakarta, Monday (10/19).

“We reported on the relatively stable macroeconomic and current economic growth, inflation target, and the macro situation of the banking sector. We also reported on ongoing investments and discussed how to increase exports with these macro figures,” he said.

Airlangga also pointed out that a task force assigned by the President is set to overcome export hindrances.

“For exports, we will boost all sectors, including manufacturing, so we will resolve issues that may reduce exports through a task force assigned by the President,” he said.

Similarly, Minister of Finance Suahasil Nazara stated that Indonesia’s domestic economy remains resilient despite global economic uncertainties while noting that global economic developments, especially those of the United States and European countries, are external factors that warrant attention.

“All of this has global impacts, which will certainly affect Indonesia. We told the President that our macroeconomic situation remains highly resilient. The people’s purchasing power also remains resilient. We will continue to maintain stability while promoting growth,” he said.

As for the State Budget, Suahasil pointed out that the Government will continue to examine budgets and improve budget efficiency to ensure appropriate and optimal budget execution.

“The measures taken by the Ministry of Finance are part of the year-end procedures that are frequently carried out to ensure the budget is implemented, while still maintaining efficiency,” he explained, adding that budget efficiency does not equate to cessation of government spending.

“This year’s Q4 State Budget expenditure will reach Rp1,300 trillion, higher than in Q4 of 2025 at Rp1,200 trillion. State Budget expenditure will continue to be higher than that in last year’s Q4. It will boost economic activities among the people, including the Government’s public services and social protection, as well as food assistance, which have begun to be rolled out this Q4. It will increase consumption activities and boost government expenditure in our economy,” he said.

To maintain national economic resilience, Suahasil stated that the Government will continue to strengthen coordination with central bank Bank Indonesia and support the role of the Financial Services Authority (OJK) in financial sector oversight.

“We will certainly continue to cooperate with Bank Indonesia to ensure Indonesia’s financial stability and support our colleagues at the OJK who conduct microprudential oversight,” he remarked. (BPMI of Presidential Secretariat) (DH/MMB)