Minister of Finance Purbaya Yudhi Sadewa reported that Indonesia’s state budget (anggaran pendapatan dan belanja negara/APBN) remained resilient through the first half of 2026 at the July 2026 edition of the APBN KiTa press conference in Jakarta on Tuesday (July 21, 2026).
The IDR 196.5 trillion deficit came despite a significant increase in state revenue, particularly tax collections. Purbaya said APBN recorded a deficit of IDR 196.5 trillion by June 2026, equivalent to 0.76% of gross domestic product (GDP).
"With strong revenue growth, productive government spending, and prudent financing management, the APBN budget deficit remains well under control at IDR 196.5 trillion, or 0.76% of GDP,” Purbaya said.
A primary surplus, on the other hand, was recorded at IDR 85.1 trillion. According to Purbaya, the figures demonstrate that the country’s fiscal position remains sound while the APBN budget continues to support economic growth and national development.
State Revenue Grows 21.4%
Purbaya revealed that state revenue reached IDR 1,459.4 trillion through June 2026, representing a 21.4% increase compared with the same period last year. Taxation remained the largest contributor, generating IDR 1,187.8 trillion in revenue. Of that amount, tax revenue totaled IDR 1,035.7 trillion, up 24.6% year-on-year.
Meanwhile, customs and excise revenue reached IDR 145 trillion, an increase of 3.4%, while non-tax state revenue totaled IDR 271 trillion, up 21.6%. Grant revenue stood at IDR 7 billion, an increase of 10.2%.
"The figures show that Indonesia’s fiscal position remains strong. We are confident APBN will continue to serve as an effective instrument for maintaining stability, supporting economic growth and development, and fortifying the foundation for future growth,” Purbaya said.
Government Spending Reaches IDR 1,656 Trillion
Government expenditure totaled IDR 1,656 trillion through the end of June 2026, an increase of 17.8% from the same period in 2025. Central government spending accounted for the largest share, reaching IDR 1,298.6 trillion, up 29.4%. Of that amount, spending by ministries and government agencies reached IDR 658.9 trillion, a 40% increase, while non-ministerial expenditure totaled IDR 639.7 trillion, up 20%.
Moreover, transfers to regional governments reached IDR 357.4 trillion, an increase of 11.2%. Purbaya said the combination of strong revenue growth, productive spending, and prudent fiscal management has been essential to maintaining APBN health.
S&P Affirms Indonesia’s Credit Rating
APBN fiscal performance also supported Standard & Poor’s (S&P) decision to reaffirm Indonesia’s sovereign credit rating at BBB with a stable outlook.
"The state budget remains healthy, expansionary, and supportive of development. This is one of the reasons S&P maintained Indonesia’s BBB rating with a stable outlook,” Purbaya said.
Beyond S&P, Indonesia also received recognition from China’s Lianhe Credit Rating, which assigned a AAA rating with a stable outlook for the Indonesian government’s planned panda bond issuance. Purbaya said the rating would elevate Indonesia’s ability to diversify its investor base and improve access to China’s capital market.
"We received a AAA stable rating, which is the highest possible rating. In China’s market, our sovereign debt is rated at the highest level. This is particularly important because China is a major market for bonds,” he said.
According to Purbaya, the ratings reflect Indonesia’s strong economic fundamentals, including resilient economic growth, solid macroeconomic conditions, resilience to external shocks, relatively low external debt, strong repayment capacity, adequate foreign exchange reserves, and a prudent government debt ratio.
“Our external debt remains relatively low, our repayment capacity is strong, our foreign exchange reserves are adequate, and the government’s debt ratio remains prudent,” Purbaya said.
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