Indonesia to Continue Budget Efficiency Measures in 2026

Jakarta, VIVA – Indonesian Finance minister, Sri Mulyani Indrawati has confirmed that the government’s policy of budget efficiency will continue into 2026.

This effort is aimed at strengthening the quality of public spending during the second year of President Prabowo Subianto’s administration.

Minister Indrawati stated that her ministry is currently monitoring various efficiency measures implemented this year.

The evaluation of 2025’s budget efficiency, she said, will serve as a reference in drafting the 2026 State Budget.

"It will definitely be done. So if you’re asking for a firm answer—yes, it will be done. The strategy refers to President Prabowo’s Asta Cita, his eight main priorities, and we will optimize spending based on the programs developed by the ministries and institutions, and obviously under the guidance of the President," the minister said on Tuesday (May 20).

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Menteri Keuangan, Sri Mulyani Indrawati

Photo :

• VIVA.co.id/Anisa Aulia

She explained that the improvement of spending quality in 2026 will involve continuing operational spending efficiency and restructuring expenditure to make it more productive and welfare-oriented.

"The enhancement of spending quality will be carried out by continuing operational expenditure efficiency and restructuring spending to be more productive and focused on public welfare," she elaborated.

The minister further said that in 2026, government spending is projected to be within the range of 14.19% to 14.75% of the Gross Domestic Product (GDP).

"The government is also improving synergy and harmonization between central and regional policies to improve the quality of regional spending, boost public service quality, and strengthen regional self-reliance," she added.

Minister Indrawati also highlighted the continued push for national flagship programs, including strengthening the implementation of the MBG (Mainstreaming Budget for Gender), development of community and elite schools, construction of food storage facilities, and the establishment of Merah Putih Cooperatives at the village and urban ward levels.

"Energy and non-energy subsidy policies will also continue to be refined in terms of targeting accuracy, aligned with improved data precision for social protection programs, and better distribution mechanisms for social assistance—including empowerment-based social safety nets," she concluded.

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"The enhancement of spending quality will be carried out by continuing operational expenditure efficiency and restructuring spending to be more productive and focused on public welfare," she elaborated.