The 2026 budget will not introduce any new taxes; instead, additional revenue will come from internal tax reforms.
Indonesia’s President Prabowo Subianto has proposed a USD 234 billion budget for 2026 on 15 August 2025, marking a 7.3% increase in spending compared to 2025.
The 2026 budget targets 5.4% GDP growth and aims to eliminate the deficit, projected at 2.48% of GDP, within three years to achieve a balanced budget. Revenue is expected to rise by 9.8% to IDR 3,147.7 trillion.
One of the key highlights of the 2026 budget is that the government will not introduce any new taxes; instead, internal tax reforms will drive revenue growth, according to Finance Minister Sri Mulyani Indrawati.
This is Prabowo’s first budget since taking office in October 2024. The parliament is set to review it over the next month.