Antara News·Indonesia·Wednesday, November 11, 2026 at 11:50 AM UTC

State Budget buffers Indonesia from global economic shocks: KSSK

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Astrid Faidlatul Habibah, Yashinta Difa

When external shocks occur, the budget is intended to absorb their impact so that the public does not immediately feel the effects,

Surabaya, E. Java (ANTARA) - Indonesia’s State Budget serves as a vital economic buffer against global shocks, helping maintain public purchasing power and sustain national growth, according to the Financial System Stability Committee (KSSK).

KSSK Secretary Herman Saheruddin said the budget operates on a countercyclical principle, cushioning the public from external pressures while supporting domestic economic activity.

“The State Budget is countercyclical in nature. When external shocks occur, the budget is intended to absorb their impact so that the public does not immediately feel the effects,” Herman said during a media briefing in Surabaya on Wednesday.

As an example, Herman cited the State Budget’s role in absorbing increases in global energy costs, helping shield domestic fuel prices from the immediate price surges experienced in other countries.

This fiscal buffer has been further supported by a recent moderation in international crude oil prices, which have fallen from above US$100 per barrel to around US$92 per barrel. In addition to protecting consumers through social protection programs and targeted subsidies, the government has maintained fiscal discipline.

The Indonesian government has also sought to preserve the credibility of public finances by keeping the budget deficit below the statutory limit of 3 percent of gross domestic product (GDP).

These measures have coincided with solid macroeconomic performance.

Indonesia's economy grew by 5.47 percent year-on-year in the third quarter of 2026, outperforming several G20 and regional economies.

KSSK remains optimistic that a continued decline in global energy prices will ease external pressures and provide further room for the national economy to expand.

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