“The 2026 State Budget is designed as the state’s instrument to achieve the national priority development agenda, as well as to carry out allocation and distribution functions for equitable welfare through transfers to regions,” she said.
She made the remarks in a post on her Instagram account @smindrawati after attending a meeting with Committee IV of the Regional Representative Council (DPD) in Jakarta on Wednesday.
She informed that the Regional Development Plan (TKD) outlined in the 2026 Draft State Budget aims to support competitiveness through productive spending, synergy with innovative financing, and strengthening local taxation power.
Thus, the TKD is expected to increase its direct impact on regional development and welfare.
The minister emphasized that the relationship between the central and regional governments in a large country like Indonesia is dynamic, thereby requiring continuous improvement of policies.
She also expressed appreciation for the aspirations, views, and constructive suggestions shared by DPD senators.
According to Indrawati, the state budget is a tool for unifying the nation. Therefore, she said she is committed to continuing efforts to strengthen and maintain social, political, economic, and financial ties between regions through the state budget.
The House of Representatives (DPR) and the government have agreed to set the deficit target in the 2026 Draft State Budget at 2.48 percent to 2.53 percent of the gross domestic product (GDP).
While the state revenue target has been set at 11.71 percent to 12.31 percent of the GDP, the target for state expenditure has not been fixed yet.
In the latest round of discussions, the proposed state expenditure target was in the range of 14.19 percent to 14.75 percent of the GDP.
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Translator: Imamatul Silfia, Raka Adji
Editor: Azis Kurmala
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