Jakarta Globe is reporting that President Prabowo Subianto laid out a 2026 state budget blueprint on Friday (15/8/25,) that aims to shrink the fiscal deficit, ramp up spending on energy security and food resilience, and accelerate the country’s transition to renewable power, while committing hundreds of trillions of rupiah to a nationwide free nutritious meals program.
Presenting the 2026 annual budget speech before the parliament, Prabowo said government spending in 2026 is projected at IDR 3,786.5 trillion (approximately USD 234 billion), with revenues expected at IDR 3,147.7 trillion. This leaves a planned deficit of IDR 638.8 trillion, or 2.48 percent of GDP. To keep deficits at a minimum, Prabowo will continue his budget austerity measures, further instructing ministries and government agencies to keep cutting non-essential spending, including business trips. The retired army general is even upbeat about being able to balance the state budget by 2028, says Jakarta Globe.
“My dream is that I shall stand at this podium — perhaps in 2027 and 2028 — to announce that we have succeeded in achieving no deficit,” Prabowo said.
Energy Spending and Production Targets
The 2026 plan allocates IDR 402.4 trillion for energy security, nearly double this year’s IDR 203.1 trillion, largely to fund energy subsidies. Prabowo stressed subsidies must be “fair and targeted” and not enjoyed by those who can afford to pay market rates.
Jakarta Globe says that Indonesia’s oil output target is set at 610,000 barrels of oil per day, up from 605,000 this year, as part of a broader push to strengthen energy sovereignty. The government will also boost natural gas production and expand renewable energy capacity, aiming for 100 percent renewable-based electricity within 10 years, far ahead of the nation’s formal 2060 net-zero commitment.
“We will accelerate our clean energy transition,” Prabowo said, citing solar, hydro, and geothermal power as key sources. Indonesia’s installed renewable capacity reached 15.2 GW, or 14.5 percent of national generation, as of mid-2025.
Nationwide Free Nutritious Meals Program
The 2026 budget dedicates a massive IDR 335 trillion to Prabowo’s flagship free nutritious meals program (MBG), which aims to combat stunting and improve human capital, says Jakarta Globe, adding that the program will target 82.9 million beneficiaries, including pregnant women, toddlers, and schoolchildren, and will require the construction of nutrition service facilities across the archipelago.
Prabowo argued the initiative will boost not only public health but also local economies by supporting farmers, fishermen, and small businesses. “This is not merely a social program; it’s a foundation for a healthy, smart, and productive generation,” he said, claiming Indonesia has achieved in seven months what other countries, such as Brazil, took over a decade to accomplish.
Education and Human Capital
According to Jakarta Globe, the education budget will total IDR 757.8 trillion in 2026, with IDR 401 trillion flowing directly to students and teachers. This includes IDR 17.2 trillion for college scholarships under the KIP Kuliah program, IDR 15.6 trillion for the Indonesia Smart Program, IDR 15 trillion in LPDP postgraduate scholarships, and the IDR 335 trillion MBG program. Another IDR 150.1 trillion will fund school and university construction, while IDR 178.7 trillion will go toward teacher and lecturer salaries.
Food Security Investments
Finance Minister Sri Mulyani Indrawati said IDR 164.4 trillion has been earmarked for food security, covering production, distribution, and consumption.
On the production side, IDR 114.1 trillion will fund fertilizer subsidies for 9.62 million tons, development of 550,000 hectares of farmland, irrigation for 104,000 hectares, and fishing and aquaculture facilities. Distribution spending includes IDR 29.9 trillion for farm roads, fishery port infrastructure, and national food reserves, while IDR 6.4 trillion will go to consumer subsidies, cheap food programs, and price stabilization.
Parliament will now deliberate on the proposal ahead of its expected passage later this year.
Source: Jakarta Globe
Photo: BPMI Setpres/Muchlis Jr
