President Prabowo Unveils 8 Priority Agendas in Indonesia’s 2026 State Budget Draft

Jakarta: President Prabowo Subianto unveiled eight priority agendas in the 2026 Draft State Budget (RAPBN).

The announcement was delivered during his Presidential Address on the government’s statement regarding the Draft State Budget and its financial note for fiscal year 2026 at the Plenary Session of the House of Representatives (DPR) in Senayan, Jakarta, on Friday, August 15, 2025.

1. Ensuring food security as the foundation of national self-reliance

Indonesia must achieve self-sufficiency in staple foods, especially rice and corn, to ensure price stability, farmers’ prosperity, and fishermen’s welfare.

“To achieve this, we are expanding new rice fields, distributing targeted subsidized fertilizers, supporting superior seeds, modern farming machinery, and affordable financing. For the Food Estate and National Food Reserves, we have allocated IDR 53.3 trillion. Fertilizer subsidies for 2026 are set at IDR 46.9 trillion for 9.62 million tons of fertilizer. We are strengthening Bulog as the buffer stock, protector of farmers, and guardian of people’s purchasing power. The government’s presence has been tangible since early 2025,” said the President.

He noted that the government has streamlined 145 complex regulations on fertilizer distribution. As a result, rice production has increased, stocks remain above four million tons, prices are stable, and farmers are better off. The 2026 RAPBN will allocate IDR 22.7 trillion for Bulog to carry out its duties. In total, IDR 164.4 trillion will be allocated in 2026 to strengthen national food security.

2. Strengthening energy resilience for national sovereignty

Prabowo pledged to boost oil and gas production, maintain energy price stability, and accelerate the transition to clean energy. Energy subsidies, he stressed, must be fair and targeted.

“Renewable energy is the future. We are accelerating power plant development—solar, hydro, and geothermal. Indonesia must become a global pioneer in clean energy. We must achieve 100 percent electricity generation from renewables within 10 years or sooner. From cities to villages, all citizens must enjoy affordable and sustainable energy,” Prabowo emphasized.

The government will support energy resilience through subsidies, tax incentives, renewable energy development, and rural electrification. In total, fiscal support for energy resilience in 2026 amounts to IDR 402.4 trillion.

3. Building a superior generation through the Free Nutritious Meals (MBG) program

Prabowo said a superior generation must grow from healthy bodies with sufficient nutrition. The MBG program is already running nationwide and continues to expand.

The program targets 82.9 million beneficiaries, including students, pregnant women, and toddlers, through local nutrition service units. It is expected to deliver long-term health and educational benefits.

“MBG improves children’s nutrition, strengthens Indonesia’s future human capital, and empowers MSMEs and the local economy. It will create hundreds of thousands of new jobs and empower millions of farmers, fishermen, breeders, and small businesses. For 2026, we are allocating IDR 335 trillion for MBG,” Prabowo stated.

4. Quality education

Prabowo stressed that education is the most powerful tool for building globally competitive human resources. The government has committed 20 percent of the budget for education—IDR 757.8 trillion in 2026, the largest allocation in Indonesia’s history.

“Education funds must be well-targeted. We will improve teacher quality, strengthen vocational training, and align curricula with labor market needs. The government is providing scholarships through the Smart Indonesia Program (PIP) for 21.1 million students, and KIP College scholarships for 1.2 million university students,” he said.

For upgrading school and university facilities, IDR 150.1 trillion is allocated, while IDR 178.7 trillion is set aside for teacher and lecturer salaries, competency improvement, and welfare. Teacher professional allowances, both for civil servants and non-civil servants, will also be provided adequately.

The government will also expand scholarships through LPDP, targeting 4,000 students to study at top global universities in 2026. “All of this is to create a smart, innovative, and productive generation ready to compete globally,” Prabowo added.

5. Providing equitable and quality healthcare

Prabowo emphasized that healthcare is the right of every citizen. The health budget will focus on strengthening national health insurance (JKN) and expanding access.

Key priorities include reducing healthcare costs, revitalizing hospitals, tackling stunting, providing nutrition support for mothers and toddlers, controlling infectious diseases, reducing tuberculosis, offering Free Health Checkups (CKG), and upgrading medical facilities.

The government guarantees that 96.8 million poor and vulnerable people will continue to receive full health insurance coverage. The 2026 healthcare budget stands at IDR 244 trillion.

6. Reviving the people’s economy through strengthening villages

Prabowo said strengthening villages is key to reviving cooperatives, empowering MSMEs, and boosting local economies. Villages must become the backbone of a people-centered economy.

“We will accelerate the development of independent villages, cooperatives, and MSMEs, grounded in the spirit of gotong royong. A total of 80,000 Village/Urban Cooperatives Merah Putih have been established, making it easier for rural communities to access basic goods, logistics, fertilizers, and financial services,” he noted.

To support this, the government has prepared low-interest financing through state banks (Himbara). This new approach aims to strengthen local village economies, cut complex logistics chains, create new jobs, eradicate poverty, and reinforce food security at the grassroots level.

“Regional economies will thrive, and local independence will strengthen national unity and sovereignty,” Prabowo added.

7. Strengthening total defense to safeguard national sovereignty

Prabowo said a strong defense underpins sovereignty, not only militarily, but also economically, socially, and politically.

“We will modernize primary defense systems, strengthen reserve components, empower national strategic industries, and improve the welfare of our patriotic soldiers,” the President affirmed.

8. Accelerating investment and global trade

Prabowo said the state budget must act as a catalyst, while Danantara and the private sector must play stronger roles in driving economic growth. Through Danantara, the government seeks to boost productive investment and strengthen Indonesia’s position in global supply chains.

“This is the momentum for Indonesia to earn respect as a global economic power. Downstream projects worth around USD 38 billion will be accelerated, covering mining, agriculture, fisheries, and energy, including coal, tin, and the battery ecosystem,” he explained.

In addition, the government has prepared a program for three million affordable homes through various schemes such as the Housing Financing Liquidity Facility (FLPP), Self-Help Housing Stimulus Assistance (BSPS), and VAT subsidies for commercial housing. A total of 770,000 homes will receive support from the 2026 state budget.

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