Indonesia's 2026 Budget Faces Implementation Challenges

Legal Uncertainty Surrounds Delayed Budget Publication

The implementation of Indonesia's 2026 state budget is facing significant challenges due to the delayed publication of the State Budget Law (UU APBN) 2026. Despite being formally enacted on October 22, 2025, the law was only made public on January 7, 2026 ⁵

. This delay has raised concerns about the legal basis for budget execution, particularly for early-year expenditures ¹

Source 1

https://nasional.kontan.co.id/news/uu-apbn-2026-belum-terbit-belanja-awal-tahun-berisiko-terancam

.

Expert Concerns About Governance and Legal Issues

Economic experts from Institute for Development of Economics and Finance (Indef) and Bright Institute have expressed concerns about potential governance and legal problems arising from the delayed publication of critical budget documents. These include the absence of the Daftar Isian Pelaksanaan Anggaran (DIPA) by December 2025, which is typically required for budget implementation ¹

²

Source 2

https://nasional.kontan.co.id/news/tanpa-uu-hingga-dipa-ekonom-nilai-pelaksanaan-apbn-2026-bermasalah

.

Government Response and Assurance

In response to these concerns, Minister Secretary of State Prasetyo Hadi has assured that the government does not plan to revise the 2026 budget, stating that it was comprehensively designed and approved through the legislative process ³

. Additionally, Finance Minister Purbaya Yudhi Sadewa had previously indicated that ministry and agency budgets could still be utilized despite the delay in DIPA distribution ²

Source 2

https://nasional.kontan.co.id/news/tanpa-uu-hingga-dipa-ekonom-nilai-pelaksanaan-apbn-2026-bermasalah

.

Economic Stability Amidst Procedural Challenges

While the budget implementation faces procedural challenges, economic indicators remain stable at the start of 2026. The Centre for Strategic and International Studies (CSIS) noted that aggregate data suggests maintained stability, though warning about potential hidden risks that could develop into economic, social, and political instability throughout the year ⁴

.