Tax & Spend
Indonesia Lifts 2026 Deficit Target But Will Respect 3% Cap
The higher spending plan stems from the increased allocation of transfer funds to regional administrations across the archipelago nation.
Photographer: Lauryn Ishak/BloombergIndonesia raised its budget deficit target for 2026 on plans for higher government spending, including increased transfers to regions weeks after violent protests rocked the Southeast Asian nation.
A parliamentary commission on Thursday approved a proposal by new Finance Minister Purbaya Yudhi Sadewa to increase the budget gap to 2.68% of gross domestic product, higher than the 2.48% proposed by President Prabowo Subianto last month but lower than the legal limit of 3%.