Finance Minister Suahasil Nazara said state spending in 2026 had risen by around Rp300 trillion to respond to disasters and higher global energy prices. The government cited disaster response in Sumatra and forest and land fires among the additional needs, while the state budget also continues to cover Pertalite and Solar fuel subsidies.

The government allocated about Rp60 trillion in additional spending for disaster response. Suahasil disclosed the overall spending increase at the Indonesian Chamber of Commerce and Industry (Kadin) national leadership meeting in Jakarta on Friday, 30 October 2026.

Spending and revenue projections shift

State expenditure was initially set at Rp3,843 trillion. At mid-year, the projected spending figure was raised to Rp3,942 trillion, a net increase of around Rp99 trillion from the original budget. The roughly Rp300 trillion increase cited by Suahasil describes the broader spending pressure to be managed, while the reported net revision to the projection is Rp99 trillion.

To support the budget, the government raised its revenue target by about Rp54 trillion, from Rp3,154 trillion to Rp3,208 trillion. The Finance Ministry also carried out budget reallocations and refocusing; Suahasil said nearly Rp200 trillion had been shifted to other items.

The projected deficit widens

The original 2026 state-budget deficit target was Rp689.1 trillion, or 2.68% of gross domestic product (GDP). The latest projection cited in the report is Rp45.2 trillion higher, at Rp734.3 trillion or 2.85% of GDP. The government said revenue adjustments and reallocations are part of managing this pressure.

These figures reflect the government’s explanation through Suahasil, rather than an independent audit of all spending needs.