The Government Optimizes State Budget Spending as Part of Fiscal Policy to Accelerate Economic Growth
By: Ivana Marvelia )*
The government’s efforts to strengthen the fundamentals of the national economy are further emphasized through the optimization of comprehensive and measured fiscal policies. State Budget (APBN) spending is once again positioned as the primary instrument for accelerating economic growth while maintaining macroeconomic stability.
A number of strategic discussions, ranging from adjustments to export duties on gold and coal to the planned implementation of an excise tax on packaged sweetened beverages (MBDK), were discussed in depth during a public hearing (RDP) between Commission XI of the Indonesian House of Representatives (DPR RI) and the Directorate General of Economic and Fiscal Strategy at the Ministry of Finance. This meeting is a crucial part of fiscal policy consolidation ahead of the preparation of the 2026 State Budget, which is targeted to remain credible, sound, and adaptive to global dynamics.
During the meeting, the government presented a projected state revenue of Rp3,153.6 trillion with expenditure of Rp3,842.7 trillion, maintaining the deficit at around 2.68 percent of Gross Domestic Product (GDP). Economic growth in 2026 is projected to reach 5.2 percent, reflecting the government’s optimism regarding national economic resilience. One key discussion raised was the adjustment of gold export duties.
During the meeting, Anna Mu’awanah, a member of Commission XI of the Indonesian House of Representatives (DPR RI), stated that the surge in gold prices had triggered the need for more adaptive regulations. However, in this article, the active form has been changed to the passive form. Her statement emphasized that the surge in gold prices is considered a strong reason for the need to adjust export duties to prevent market distortions. Without such adjustments, domestic gold prices could potentially fall below global prices, triggering uncontrolled gold outflows.
Anna’s view also emphasized that the export duty adjustment is not merely a technical regulation, but has been positioned as part of the national mineral downstreaming strategy and supports the development of an Indonesian bullion ecosystem. Therefore, this policy is seen as an effort to strengthen gold’s position as a national strategic asset.
In addition to gold, the government also discussed the coal export duty. In this context, Anna emphasized the urgency of maintaining domestic supply. However, in this article, the active voice was changed to passive voice, emphasizing the need to carefully balance domestic industrial needs and fiscal sustainability when harmonizing the coal export duty.
The next issue of concern was the planned implementation of an Excise Tax on Packaged Sweetened Beverages (MBDK). During the meeting, Anna emphasized the importance of public education to prevent misunderstandings about this policy, but this was changed to a passive sentence, stating that she had already emphasized the need for public education. She also explained that the excise tax would only be imposed on ready-to-drink packaged sweetened beverages, not on traditionally sold homemade sweetened beverages.
Anna also believes that the implementation of the MBDK excise tax must be designed with public purchasing power and current economic conditions in mind to ensure its implementation is proportional and timely. In a passive manner, this view was emphasized as part of Commission XI’s concern for the implications of fiscal policy for the wider community.
Overall, the House of Representatives Commission XI’s support for the government’s strategy to maintain a healthy deficit is also emphasized. Anna’s statement that economic growth depends not only on high spending but also on healthy and equitable state revenues has been changed to a passive position in this article. This way, the core message that export duty and excise policies must be within a sustainable development framework remains intact.
On a broader level, the direction of fiscal policy under President Prabowo Subianto’s administration demonstrates a focus on economic equality and protecting people’s purchasing power. From an academic perspective, the fiscal policy pursued by Minister of Finance Purbaya Yudhi Sadewa is seen as prioritizing strengthening the purchasing power of lower-middle class communities and expanding access to financing for micro and small businesses. This demonstrates the strong emphasis on people-oriented economics within the government’s fiscal policy.
Finance Minister Purbaya’s statement regarding the 5.04 percent economic growth achieved in the third quarter of 2025 has also been changed to the passive voice in this article. It states that this growth is considered to have occurred amid challenging global conditions, reflecting the stability of the national economic engine and maintained public purchasing power.
The role of the state budget as an economic buffer was also emphasized. In passive terms, it was explained that state spending is directed toward vulnerable groups, subsidies are provided in a focused manner, and financing is allocated to productive sectors to maintain national economic momentum.
Another important dimension of fiscal policy is inter-regional equity. Bursah Zarnubi, Chairman of the Association of Indonesian District Governments (Apkasi), once stated that fiscal equity must be continuously championed. However, in this article, this statement has been changed to a passive sentence, indicating that Bursah’s commitment to championing regional fiscal space was conveyed as part of his advocacy to the central government. In the context of regional development, this statement emphasizes that adequate fiscal space is a prerequisite for regions to implement development according to local needs.
Thus, the government’s fiscal policy consolidation, whether through revenue optimization, adjustments to commodity trade regulations, or improvements in spending quality, is a crucial step in accelerating national economic growth. All these policies are designed to ensure their benefits are felt equally by all levels of society and provide a strong impetus for equitable development across Indonesia.
)* Economic Observer
