Indonesia’s budget shows resilience on revenue rebound

Jakarta (ANTARA) - Indonesia’s State Budget (APBN) recorded a deficit of Rp180.4 trillion (US$10.02 billion), or 0.70 percent of GDP during the first five months of 2026, Finance Minister Purbaya Yudhi Sadewa announced here on Friday.

"In the first five months, the deficit was just 0.7 percent. Our State Budget remains highly secure," he said, assuring the public of the country's fiscal health.

According to him, positive trend in the Budget performance was supported by a strong rebound in tax collection and customs revenues.

Total state revenue reached Rp1,185 trillion (US$65.83 billion) as of May, representing 37.6 percent of the full-year Rp3,153.6 trillion target (US$175.20 billion).

This marks a robust 19.1 percent year-on-year (yoy) increase, driven heavily by a turnaround in tax receipts.

Tax revenue reached Rp958.2 trillion (US$52.23 billion), supported by high absorption.

Tax revenues totaled Rp834.4 trillion (US$46.36 billion), representing a positive growth of 22.1 percent (yoy).

Meanwhile, customs and excise revenues grew moderately by 0.7 percent (yoy), reaching Rp123.8 trillion (US$6.88 billion).

"There has been significant improvement, primarily in taxes, compared to last year. Last year, tax growth was negative, but now it is positive," Purbaya said, adding that the ministry is pushing to maintain an upward trajectory of over 20 percent growth through ongoing taxation reforms.

Meanwhile, non-tax state revenues (PNBP) totaled Rp226.4 trillion (US$12.58 billion), representing a 19.9 percent (yoy) growth.

On the expenditure side, the government aggressively ramped up spending to keep economic momentum on track. Total state expenditure surged by 34.4 percent (yoy) to Rp1,365.4 trillion (US$75.86 billion), accounting for 35.5 percent of the Rp3,842.7 trillion (US$213.48 billion) annual budget.

Central government spending saw the most dramatic rise, sky-rocketing 52.6 percent (yoy) to Rp1,059.3 trillion (US$58.85 billion).

Ministry and institutional spending reached Rp517.7 trillion (US$28.76 billion), a massive 58.9 percent spike from the same period last year.

Non-ministry spending climbed 47 percent to Rp541.6 trillion (US$30.09 billion).

"This is good. It means we are actively on track to accelerate government spending to support the economy,” Purbaya remarked, regarding the spending surge.

Regional transfers bucked the upward trend, declining slightly by 4.9 percent to Rp306.1 trillion (US$17.01 billion).

With such performance, the primary balance - a key metric of fiscal sustainability that excludes debt interest payments - swung back into a surplus of Rp58.6 trillion (US$3.26 billion).

"This means our budget is now more sustainable than in previous months," Purbaya noted.

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Translator: Imamatul Silfia, Yashinta Difa

Editor: Primayanti

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