The Indonesian government forecasts a government budget deficit of 2.48% of GDP for FY 2026, while pledging to eliminate the shortfall and achieve a balanced budget within three years. Indonesian President Prabowo Subianto proposed an IDR 3,786.5 trillion (USD 234 billion) budget for FY 2026, which is 7.3% higher than the latest estimate for 2025 spending. The revenue target is IDR 3,147.7 trillion, about 9.8% higher than this year’s projection. Prabowo delivered the administration’s first budget to parliament on Friday. Meanwhile, the budget targets annual GDP growth of 5.4% and inflation of 2.5%. Investors are closely watching Prabowo’s fiscal policy due to his potentially costly election promises and past remarks indicating a willingness to take on more debt to spur growth of 8% during his term. Prabowo took office last October with the 2025 budget prepared by his predecessor. Parliament typically takes about a month to review budget proposals.