Indonesia's 2026 State Budget Reaches Rp3.786.5 Trillion, Largest Allocation for the Central Government

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Nabilah Muhamad 15/08/2025 19:54 WIB

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The Indonesian government has allocated a national budget of Rp3,786.5 trillion in the 2026 State Budget Draft (RAPBN). Of this total, approximately 83% will be allocated to central government spendi

State Budget Allocation in the 2026 State Budget

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Indonesia's 2026 State Budget Reaches Rp3.786.5 Trillion, Largest Allocation for the Central Government

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State Budget Allocation in the 2026 State Budget

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In the 2026 State Budget (RAPBN), the government targets state expenditure of Rp3,786.5 trillion.

"We must continue to improve the quality of state spending. Inefficient spending must be cut; it must provide benefits," said President Prabowo in his delivery of the Financial Note and the 2026 RAPBN on Friday (August 15, 2025).

Of the total expenditure budget, approximately 83%, or Rp3,136.5 trillion, is allocated to central government spending (BPP). This figure is up 17.8% from the 2025 State Budget (year-on-year/yoy).

Specifically, the BPP will be used for ministry/agency spending (K/L) of Rp1,498.3 trillion and non-K/L spending of Rp1,638 trillion.

Then, about 17% of the total expenditure, or Rp650 trillion, is channeled to transfers to regions (TKD), down 24.8% (yoy) from last year.

TKD is channeled to fund the implementation of fiscal decentralization, which includes Revenue Sharing Funds (DBH), General Allocation Funds (DAU), Special Allocation Funds (DAK), Special Autonomy Funds (Otsus), Regional Special Funds, Village Funds, and fiscal incentives for well-performing regional governments.

(Read: Top 10 Ministries with the Largest Budgets According to the 2026 State Budget)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's 2026 State Budget Reaches Rp3.786.5 Trillion, Largest Allocation for the Central Government

Indonesia's 2026 State Budget Reaches Rp3.786.5 Trillion, Largest Allocation for the Central Government

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Indonesia's 2026 State Budget Reaches Rp3.786.5 Trillion, Largest Allocation for the Central Government

Indonesia's 2026 State Budget Reaches Rp3.786.5 Trillion, Largest Allocation for the Central Government

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