Constitutional Court: Changes to the 2026 State Budget Need DPR Approval

Jakarta, 16 September 2026 — The Constitutional Court (Mahkamah Konstitusi, MK) partly granted the judicial review of Law No. 17 of 2025 on the 2026 State Budget (APBN 2026) in Decision No. 100/PUU-XXIV/2026. The petition was filed by a coalition of civil society organisations, including MBG Watch.

The issue

Article 8(5) of the 2026 Budget Law allowed the government to change budget allocations through a Presidential Regulation, without going back to the House of Representatives (DPR). The petitioners argued that this gave the executive too much room to shift state spending on its own.

The ruling

The Court declared Article 8(5) conditionally constitutional. It is valid only if understood to mean that budget changes affecting central government spending by function require DPR approval. Reading the Court's considerations, Justice Arsul Sani stressed that the government's budget powers must follow the principle of checks and balances. The Court relied on Article 23(1) of the 1945 Constitution, which requires the state budget to be set by law and managed openly and responsibly.

Why it matters

• Major reallocations of 2026 central government spending now need parliamentary approval, not only a Presidential Regulation.
• The ruling strengthens the DPR's budget function and gives the public a clearer basis to scrutinise how state funds are moved.
• Decisions of the Constitutional Court are final and binding from the moment they are pronounced (Article 24C of the 1945 Constitution).

For businesses that depend on government programmes or contracts, the decision may affect the timing of budget revisions. It is worth tracking DPR deliberations on any mid-year budget changes.

Need advice on how this affects you or your business? Contact Andri and Partners.

Sources: NU Online, IDX Channel, Sindonews, Suara.com (16 September 2026).