JAKARTA (Reuters) -Indonesia might revise its $236 billion budget proposal for 2026, its new finance minister said late on Wednesday, a few days after the sacking of respected economist Sri Mulyani Indrawati from the post.
President Prabowo Subianto presented the proposal prepared by Sri Mulyani to parliament in August, with a deficit forecast at 2.48% of GDP and assuming a 10% increase in government revenues. Parliament typically requires until early October at the longest to approve the budget.
According to a statement from Prabowo’s office, Sri Mulyani’s successor, Purbaya Yudhi Sadewa, told the president that because the figures in the proposal have yet to be approved, changes in the budget remain “very possible”.
Mukhamad Misbakhun, the head of a parliamentary commission overseeing finance affairs, said lawmakers would support Prabowo’s programmes.
“Changes to the figures and development targets outlined in the 2026 budget proposal are very reasonable and possible. We will provide our support if there are indeed changes to the 2026 budget,” he told Reuters late on Wednesday.
The sacking of Sri Mulyani has revived concerns in financial markets about the potential erosion of prudent fiscal policy. Purbaya has said he would still follow existing rules, including keeping annual fiscal gaps under the legal deficit ceiling of 3% of GDP.
(Reporting by Stefanno Sulaiman; Editing by David Stanway)
