Indonesia's Constitutional Court Curbs Presidential Authority Over 2026 Budget Changes
The Constitutional Court ruled that any alteration to the 2026 state budget by presidential decree must receive DPR approval, limiting the president’s fiscal discretion.
Indonesia’s Constitutional Court issued ruling No. 100/PUU-XXIV/2026, restricting the president’s power to modify the 2026 state budget through regulations unless the House of Representatives (DPR) approves the change. The judgment, handed down after a hearing on September 16, found three of seven contested provisions conditionally unconstitutional, including Article 8(5) on budget reallocations and Article 29(1) on emergency fiscal actions.
It also clarified that village funds may only be used by village governments for sustainable development, not solely to implement central policies. MBG Watch, represented by researcher Muhamad Saleh, praised the decision as a safeguard for programs such as the Free Nutritious Meals (MBG) initiative. Other petitioners, including the Sayogo Institute and the Indonesian Consumers Foundation (YLKI), argued the original law gave the executive overly broad budgetary authority. The court rejected challenges to provisions governing regional transfers and special autonomy funds, leaving those sections intact.
Why it matters
The ruling ensures legislative oversight of Indonesia's budget, preventing the president from unilaterally redirecting public funds.
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