Indonesia's BNPB Sees Significant Budget Reduction for 2026

Budget Cut Details

The Indonesian government's budget for the National Disaster Management Agency (BNPB) has been substantially reduced for the fiscal year 2026. According to the 2026 State Budget Financial Note, the BNPB's allocation has been set at Rp491 billion, marking a significant decrease from the Rp2.01 trillion allocated in the 2025 State Budget ¹

Current Financial Position

Finance Minister Purbaya Yudhi Sadewa clarified that despite the reduced allocation, the BNPB currently still has approximately Rp500 billion available for disaster management activities. The minister emphasized that the Ministry of Finance is prepared to consider additional funding if required by BNPB during the year.

Implications and Preparedness

The budget reduction comes at a time when Indonesia remains vulnerable to various natural disasters. The government's ability to respond effectively to these events will depend on the available funding and the efficiency of its disaster management processes. The remaining Rp500 billion in the BNPB's budget is expected to cover immediate disaster response needs, while any additional requirements will be assessed on a case-by-case basis.

Government's Stance

Minister Purbaya stated, "The BNPB still has around Rp500 billion available. If additional funds are needed later, we are prepared to allocate them, and it is already included in the budget." This statement was made during the KADIN event at Park Hyatt Hotel Jakarta on Monday, December 1, 2025. The government's commitment to supporting disaster management efforts remains evident despite the budget reduction.