Bisnis.com, JAKARTA—Amid trade war and geopolitical tensions, President Prabowo Subianto's administration is aiming for economic growth of at least 5.2% in 2026. To support this target, the government is maintaining an expansive fiscal policy designed to cushion the domestic economy from the adverse effects of global trade disruptions.
This fiscal stance is reflected in the 2026 Draft State Budget, which is projected to run a deficit of between 2.48% and 2.53% of gross domestic product (GDP), according to the 2026 Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF) document. The upper limit of this deficit range is consistent with the government's plan for the 2025 State Budget.
