The Ministry of Finance recorded tax revenue realization of IDR 1,917.6 trillion as of 31 December 2025, equivalent to 87.6% of the IDR 2,189.3 trillion target in the State Budget (APBN). Purbaya Yudhi Sadewa stated that the main components consisted of corporate income tax (IDR 321.4 trillion), personal income tax/PPh 21 (IDR 248.2 trillion), VAT & luxury goods tax (IDR 790.2 trillion), and final income tax/PPh 22/26 (IDR 345.7 trillion). This indicates that annual tax revenue fell short of the target.
– Kontan, 08 January 2026
2025 Government Spending Reaches 95.3% of State Budget Ceiling
Minister of Finance Purbaya Yudhi Sadewa reported that government expenditure realization by end-2025 reached IDR 3,451.4 trillion, or 95.3% of the APBN ceiling. Central government spending stood at IDR 2,602.3 trillion (96.3%), with ministry/agency (K/L) spending exceeding the ceiling while non-K/L spending remained below target. Transfers to regions reached 92.3%. Despite weaker revenue performance, the government maintained spending to preserve economic momentum through fiscal stimulus. The fiscal deficit for 2025 remains targeted below 3%.
– Kontan, 08 January 2026
Consumers Becoming More Cautious on the 2026 Economic Outlook
Consumer expectations for economic conditions over the next six months declined slightly in December 2025, though they remain in optimistic territory. Bank Indonesia’s Consumer Survey showed the Consumer Expectations Index (CEI) easing to 135.6 in December from 136.6 in November. Optimism continues to be supported by improved income expectations, while expectations for employment and business activity weakened but remain positive.
– Kontan, 09 January 2026
Ministry/Agency Spending Surpasses 129.3% of 2025 Budget Ceiling
Spending by ministries/agencies (K/L) surged to IDR 1,500.4 trillion, or 129.3% of the 2025 APBN ceiling of IDR 1,324 trillion. Vice Minister of Finance Suahasil Nazara explained this was primarily due to budget reallocations from non-K/L spending to K/L spending to align with government priorities, including utilization of contingency reserves such as disaster response.
Earlier in 2025, the government implemented budget efficiency measures of IDR 306.7 trillion through spending freezes, of which IDR 206.4 trillion was later reopened to support essential operations and social assistance. In terms of composition, goods expenditure grew 8.3% YoY—reflecting fiscal stimulus via programs such as school operational assistance (BOS), biodiesel subsidies, and the Free Nutritious Meal Program—while capital expenditure increased sharply by 20.3% YoY to IDR 427.5 trillion.
– Kontan, 08 January 2026
Prabowo Announces Indonesia Achieved Rice Self-Sufficiency in 2025
President Prabowo Subianto officially announced that Indonesia achieved rice self-sufficiency in 2025—only one year after implementation, significantly faster than the original four-year target. The announcement was delivered in Karawang on Wednesday (7 January 2026), where the President emphasized food independence as a foundation of national sovereignty.
Going forward, the government aims to extend self-sufficiency to other commodities such as corn. Minister of Agriculture Andi Amran Sulaiman has stated that Indonesia is close to achieving corn self-sufficiency, which is expected to reduce feed costs and fertilizer prices for farmers.
– Kontan, 07 January 2026
Bappenas: State Spending Redirected to Danantara and Free Nutritious Meal Program for Long-Term Impact
Deputy Minister of National Development Planning (Bappenas), Eka Chandra Buana, stated that the transformation of government spending is being directed toward high-impact programs such as Danantara and the Free Nutritious Meal Program (MBG) to ensure fiscal policy delivers measurable economic and social outcomes rather than purely consumptive effects.
Danantara is positioned as a productive investment vehicle with strong multiplier and spillover effects, while MBG is viewed as a long-term investment in human capital with intergenerational benefits. To ensure the effectiveness of budget reallocation, Bappenas encourages the use of the Overlapping Generation (OG) Model to assess impacts on productivity, fiscal sustainability, and intergenerational equity.
– Antara, 08 January 2026
Special Economic Zones Accelerated as Engines of Downstreaming and Economic Transformation in 2026
The government is accelerating the role of Special Economic Zones (SEZ/KEK) as key drivers of national economic transformation, with a focus on industrial downstreaming in early 2026. The National Council for SEZs recorded 25 SEZs across sectors, with four designated as national priorities under the 2025–2029 RPJMN: Sei Mangkei, Galang Batang, Gresik, and Arun Lhokseumawe—intended to strengthen global supply chains and exports.
The government targets approximately IDR 43 trillion in investment (FDI and domestic), supported by infrastructure development, regulatory facilitation, and fiscal and non-fiscal incentives. In 2026, SEZ development will focus on improving zone management quality to maximize regional economic impact.
– Kontan, 06 January 2026
Dragon EV Battery Project to Begin Operations in H1 2026
The Ministry of Energy and Mineral Resources confirmed that the electric vehicle (EV) battery plant developed by the Antam–IBC–CATL consortium (the Dragon Project) will be inaugurated and begin production in the first half of 2026. Minister Bahlil Lahadalia stated that the project—groundbroken by President Prabowo in Karawang in June 2025—represents an investment of USD 5.9 billion with annual capacity of 15 GWh.
The investment is divided across two locations: USD 4.7 billion for upstream facilities in North Maluku (precursor, HPAL, cathode, and RKEF) and USD 1.2 billion for downstream battery cell facilities in Karawang. The project is a collaboration between PT Aneka Tambang Tbk, Indonesia Battery Corporation, and CATL, and forms part of Indonesia’s nickel downstreaming and national battery ecosystem strategy.
– Kontan, 08 January 2026