FX.co ★ Indonesia Flags Potential Changes to 2026 Budget Plan

Indonesia is considering potential revisions to its proposed USD 236 billion budget for 2026, according to the nation's new finance minister, Purbaya Yudhi Sadewa, speaking shortly after the replacement of the long-serving former minister, Sri Mulyani Indrawati. This budget, initially drafted under Sri Mulyani's guidance and presented by President Prabowo Subianto in August, anticipates a fiscal deficit of 2.48% and a 10% increase in government revenues. Parliament has until early October to finalize the budget's approval. In a statement released by President Prabowo's office, Purbaya noted that updates to the budget are "very possible" since it has yet to receive legislative endorsement. The departure of Sri Mulyani has raised market concerns regarding the stability of Indonesia's fiscal management. Nonetheless, Purbaya has promised to adhere to the existing fiscal policies, including maintaining the legal deficit limit of 3% of GDP.