Indonesia's 2026 State Budget Includes Massive Rp 318 Trillion Subsidy Allocation

Comprehensive Subsidy Program

The Indonesian government has earmarked Rp 318 trillion for subsidy allocation in the 2026 State Budget, as stipulated in Law No. 17/2025 concerning the 2026 State Budget. This substantial budget allocation is designed to support critical sectors of the economy through targeted financial assistance.

Sectoral Distribution

The subsidy budget for 2026 will be distributed across multiple key sectors, with particular focus on energy and fertilizer subsidies. These allocations are crucial for maintaining price stability and supporting industries that are vital to both economic performance and public welfare. The government's strategic allocation demonstrates its commitment to balancing fiscal management with social and economic support measures.

Regulatory Framework

The allocation is formally established through Law No. 17/2025, which serves as the legal foundation for the government's budgetary and expenditure plans for the fiscal year 2026. This legislative backing provides a robust framework for the implementation of the subsidy program and ensures accountability in the management of these significant funds.