Indonesia’s House of Representatives (DPR) Commission XI is poised to commence deliberations on the revision of Law No. 17 of 2003 concerning State Finance. Commission XI Chairman Mukhamad Misbakhun stated that the institution aims to complete the revision of the State Finance Law before the 2027 State Budget (APBN) comes into effect on January 1 next year.
Crucially, Misbakhun firmly denied that the revision of the State Finance Law would alter the 3 percent of Gross Domestic Product (GDP) ceiling for the State Budget deficit. “We are not moving towards such a situation,” he told reporters at Balai Kartini, Jakarta, on Monday, May 25, 2026.
According to Misbakhun, the State Finance Law necessitates revision due to existing overlapping regulations. One prominent example he cited is the status of the Minister of Finance, who is no longer mandated to hold shares in State-Owned Enterprises (SOEs). This specific change occurred following the establishment of Danantara, which redefined the Ministry of Finance’s role away from SOE shareholding.
Misbakhun further elaborated that the revised law would adopt an omnibus law approach, integrating and encompassing other vital pieces of legislation, including the State Treasury Law and the Non-Tax State Revenue Law. He emphasized the importance of this comprehensive harmonization, stating, “This must be completed to ensure that the laws are thoroughly and effectively harmonized.”
The deliberations for the State Finance Law revision are slated to begin after Commission XI concludes its work on the revision of the Law on Development and Strengthening of the Financial Sector (P2SK). Misbakhun projected that the P2SK Law revision is targeted for completion by June 2026.
Editor’s Choice: The Future of Long-Term Contracts After the Establishment of SOE Export
Summary
Indonesia’s House of Representatives (DPR) Commission XI is preparing to revise Law No. 17 of 2003 concerning State Finance. The institution aims to complete this revision before the 2027 State Budget comes into effect next January. Commission XI Chairman Mukhamad Misbakhun explicitly denied that the revision would alter the 3 percent of GDP ceiling for the State Budget deficit.
The revision is necessary to resolve existing overlapping regulations, such as the Minister of Finance’s redefined role regarding State-Owned Enterprise shareholding following Danantara’s establishment. The revised law will adopt an omnibus approach, integrating other vital legislation like the State Treasury Law and the Non-Tax State Revenue Law for comprehensive harmonization. Deliberations are set to begin after the completion of the P2SK Law revision, targeted for June 2026.