Indonesia highlights State Budget's role in driving economic growth

..the State Budget serves as a fiscal instrument to stimulate economic growth while safeguarding public welfare through prudent management.

Jakarta (ANTARA) - Finance Minister Suahasil Nazara emphasized the role of Indonesia's State Budget as a key driver of domestic economic growth, citing positive growth trends across Southeast Asia.

He made the remarks during a meeting between ASEAN finance ministers and World Bank Group President Ajay Banga in Bangkok, Thailand.

"As a region, we know that we are in good shape. I am confident this is because we possess sound development policies and credible public policies," Suahasil said in a statement released on Tuesday.

He highlighted that ASEAN continues to be a "bright spot" in the global economy, supported by its young population, rising incomes, and sound policy management.

In Indonesia, Suahasil said the State Budget serves as a fiscal instrument to stimulate economic growth while safeguarding public welfare through prudent management.

The Finance Ministry reported that the State Budget deficit reached Rp319 trillion (around US$17.82 billion) as of September 30, 2026, equivalent to 1.24 percent of gross domestic product (GDP).

Suahasil said fiscal performance remained on track with the initial budget plan, which sets the full-year deficit target at Rp689.1 trillion (US$38.50 billion), or 2.68 percent of GDP.

State revenue reached Rp2,341.5 trillion (US$130.81 billion), representing 74.2 percent of the annual target and a 25.5 percent increase year on year.

Meanwhile, state expenditure reached Rp2,660.5 trillion (US$148.63 billion), equivalent to 69.2 percent of the annual target and marking a 19 percent year-on-year increase.

Suahasil added that Indonesia's economic foundations were further strengthened by its natural resource potential, ongoing downstreaming initiatives, and private capital mobilization, which are key priorities under President Prabowo Subianto's administration.

"Learning from the world is one thing, but sharing the ASEAN story—and Indonesia's story—with the world is another. We have many stories to tell," he said.

"I am convinced that if we combine the stories of ASEAN over the past 50 to 60 years, it forms a success story worthy of the world's attention," the minister concluded.

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Translator: Imamatul Silfia, Yashinta Difa
Editor: M Razi Rahman
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