Kemendag budget cut of Rp 752 billion prompts a fresh request: the Ministry of Trade (Kemendag) is seeking an additional Rp 886.6 billion for the 2026 fiscal year. Deputy Minister Dyah Roro Esti announced the request during a House Commission VI hearing.
Why Kemendag Budget Cut Matters
The initial indicative budget for Kemendag in 2026 stood at Rp 1.1 trillion. After cuts, funding dropped significantly—especially program allocations that fell by nearly 90% in some sectors. The rollback limits Kemendag’s ability to run export and market protection initiatives effectively :contentReference[oaicite:1]{index=1}.
Details of the Rp 886B Top-Up Request
Deputy Minister Dyah Roro Esti detailed the allocation: Rp 272.6 billion for operational expenses and Rp 614 billion for non-operational costs. This would restore the total Kemendag budget to around Rp 1.98 trillion :contentReference[oaicite:2]{index=2}.
Program Needs Behind the Request
The additional funds aim to support a variety of programs: salary increases for 915 staff, 335 outputs tied to national priorities, and 270 additional non-PNBP tasks. These include trade facilitation and export-oriented initiatives :contentReference[oaicite:3]{index=3}.
Political Pushback from Commission VI
Commission VI of the House urged Kemendag to propose a top-up to Rp 2 trillion, arguing the ministry performs well. They considered the initial budget cut excessive and unsustainable, especially given surging exports :contentReference[oaicite:4]{index=4}.
Next Steps and Potential Impact
The proposal now awaits formal approval from both the Ministry of Finance and the National Development Planning Agency (Bappenas). If the additional funds are granted, the Ministry of Trade (Kemendag) will be able to maintain and potentially expand its priority trade initiatives. These include efforts to stabilize the domestic market, enhance export competitiveness, and secure international trade partnerships. Industry stakeholders, especially in the manufacturing and export sectors, are closely monitoring the decision, as it could significantly shape Indonesia’s economic trajectory in 2026.
Conclusion: Kemendag’s Funding at a Crossroads
With a Kemendag budget cut of Rp 752 billion looming over the ministry’s financial plans, the proposed Rp 886 billion top-up becomes more than a mere request—it is a fiscal necessity. The contrasting directions of budget reduction and increased funding demands highlight deeper tensions within Indonesia’s national budget priorities. It reflects the ongoing balancing act between tightening fiscal discipline and supporting vital economic functions, particularly trade. How the government responds to this request may set the tone for broader economic policy in 2026 and beyond.
