Prabowo’s Populist Budget Raises Doubts Over Revenue Goals

Indonesia risks blowing past its budget deficit target for next year, according to analysts, citing President Prabowo Subianto’s populist spending promises and no plans for new tax measures.

The government aims to collect 3,148 trillion rupiah ($194 billion) in state revenue in 2026, a 10% jump from the estimate for this year. That will rely on an even sharper 13.5% increase in tax revenues, which Finance Minister Sri Mulyani Indrawati said last week would come from improving compliance and expanding the tax base to include the shadow economy.