President pushes fiscal reform, State Budget deficit control

Jakarta (ANTARA) - Indonesian President Prabowo Subianto called on his aides, including Finance Minister Sri Mulyani Indrawati, to push for fiscal reform and control the State Budget (APBN) deficit during a limited meeting in Jakarta on Tuesday evening.

“During the intensive meeting, the head of state received a report on the progress of ongoing discussions on the APBN at the House of Representatives,” Cabinet Secretary Teddy Indra Wijaya remarked here on Wednesday.

The APBN discussions took place after a meeting on optimizing special economic zones at the Presidential Palace.

According to Wijaya, President Prabowo provided comprehensive and strategic instructions to his ministers to protect Indonesia’s fiscal strength.

He emphasized the importance of ensuring the APBN functions as an effective tool to stimulate and sustain national economic growth.

The president also reiterated the need for deregulation—simplifying complex or overlapping rules—to foster a more conducive and supportive ecosystem for sustainable economic expansion.

“The meeting also covered preparations for the formulation of financial notes and the 2026 APBN Draft, which the president plans to deliver directly to the parliament in August,” Wijaya remarked.

Separately, Minister Indrawati confirmed that the president reminded her to direct the APBN to fund priority government programs.

“Mr. President gave clear directives, urging us to keep improving state revenues and ensure the budget is spent strictly on crucial programs,” she told reporters after the meeting.

She cited examples including the Free Nutritious Meals program, Sekolah Rakyat (People’s Schools), Red and White Village Cooperatives, and school renovation projects.

Regarding deregulation, the finance minister noted that President Prabowo stressed the need to reduce the economy’s reliance on the APBN.

“In this regard, he wants regulations that better support business, investment, and trade,” Indrawati added.

Coordinating Minister for Economic Affairs Airlangga Hartarto, State Secretary Minister Prasetyo Hadi, and Deputy Finance Ministers Suahasil Nazara and Thomas Djiwandono were also present at the meeting.