Indonesia Roundup: Record $46.4B education budget, zero deficit ambition, minister arrest

Indonesia sets record education budget of $46.4 billion for 2026

Indonesia has allocated Rp 757.8 trillion ($46.4 billion) for education in 2026, the largest budget in the country’s history. President Prabowo Subianto announced the figure during the presentation of the 2026 Draft State Budget. Of the total, Rp 178.7 trillion ($10.9 billion) is allocated for teacher and lecturer allowances covering salaries, competency development, and welfare. The government will also fund scholarships for 21.1 million students under the Smart Indonesia Programme (PIP) and 1.2 million under the Smart Indonesia Card (KIP) for College.

Anti-scam centre launched to curb online fraud losses

The Indonesian government has launched the Indonesia Anti-Scam Centre (IASC) to handle complaints, coordinate enforcement, and raise awareness on digital fraud and illegal financial activities. Minister of Communication and Digital, Meutya Hafid, said the IASC has received 225,000 public reports and blocked 71,000 accounts linked to scams. She added that the ministry will continue blocking suspicious sites, stressing the importance of public vigilance in avoiding online fraud.

Indonesia to establish 500 territorial development battalions by 2029

The Indonesian government has announced plans to establish 500 territorial development battalions across the country within five years, with 100 units to be formed annually. According to the Defence Ministry, the initiative has secured budget support from the Ministry of Finance. Defence Minister Sjafrie Sjamsoeddin confirmed that 100 battalions have already been created and emphasised that the units will assist government programmes, particularly in supporting downstreaming and national self-sufficiency efforts.

Prabowo targets zero state budget deficit by 2028

President Prabowo Subianto has pledged to eliminate Indonesia’s state budget (APBN) deficit by 2028, aiming for a surplus between 2027 and 2028. “I want to stand before this assembly and convey that we have succeeded in having a state budget with no deficit whatsoever,” Prabowo said during the 2026 Draft State Budget presentation on August 15. However, economists have questioned the feasibility of the plan. Paramadina University’s Wijayanto Samirin said a deficit-free budget is “unrealistic” given Indonesia’s spending needs on infrastructure, jobs, and human resources. He argued a 2% deficit would be more sustainable. Celios Executive Director Bhima Yudhistira also warned that forcing a surplus could hinder growth, noting that deficits below 3% of GDP are permitted by law.

Prabowo cabinet member arrested in KPK sting ops

Deputy Minister of Manpower Immanuel “Noel” Ebenezer Gerungan was arrested by the Corruption Eradication Commission (KPK) in a sting operation on August 21. He was detained at the Ministry of Manpower in Jakarta. KPK deputy chair Fitroh Rohcahyanto confirmed the arrest, saying Noel was implicated in an alleged extortion case but declined to give further details. Noel was appointed deputy minister on October 21 after backing President Prabowo Subianto in the 2024 election. He previously led Jokowi Mania in support of Joko Widodo and later shifted allegiance to Prabowo. Noel, who also joined the Gerindra Party, is the first member of Prabowo’s cabinet to be arrested by the KPK.