Indonesia’s budget accounts for about 14–15% of GDP, finance minister says

Indonesia cannot rely on its state budget alone to finance development and support economic growth, Finance Minister Suahasil Nazara said on 26 October. He put the budget’s size at roughly 14–15 per cent of gross domestic product, with households and businesses driving most economic activity.

Speaking during questions at the Danantara Technology Innovation Investment Forum (DTIIF) 2026, Suahasil estimated state spending for 2026 at slightly below Rp4,000 trillion, against GDP of about Rp25,000 trillion. He said household consumption, corporate investment, exports and imports all contributed to economic activity.

The government’s task therefore extended beyond increasing expenditure, he said. It needed to coordinate economic participants and identify where state intervention could have the greatest impact. Public funds should support activities with strong multiplier effects, he added.

Suahasil also stressed that spending plans required sufficient revenue. The Finance Ministry has a target to collect around Rp3,400 trillion in state revenue in 2027, helping finance expenditure of approximately Rp4,000 trillion.

He outlined three responsibilities for fiscal policy: supporting growth through productive spending, maintaining economic stability during global disruptions, and keeping the budget credible and sound. He reiterated a commitment to hold the deficit below 3 per cent of GDP.

Danantara also had a role in financing national development, Suahasil said. He described it as Indonesia’s investment arm, working alongside the state budget’s fiscal-policy role, and said the two instruments needed close coordination to deliver the country’s development agenda.