Koster Defends Bali’s 2026 Budget Deficit and Revenue Targets

Denpasar — — Bali Governor Wayan Koster has defended the province’s draft 2026 budget, arguing that its lower locally generated revenue target and projected deficit reflect realistic assumptions and conservative accounting rather than a pessimistic outlook on the island’s economy, according to statements delivered to the Regional Legislative Council (DPRD) and reported by several local outlets.

The draft 2026 budget (RAPBD Semesta Berencana) projects total regional revenue of more than Rp5.3 trillion and regional spending of over Rp6 trillion, resulting in a planned deficit of about Rp759 billion, or 14.3 percent of revenue. Koster has stressed that the deficit is a consequence of the overall budget posture and will be covered through net financing, primarily from the estimated remaining balance of the 2025 budget (SiLPA) and scheduled debt repayments.

Lower PAD target and budget posture

In his presentation to DPRD Bali, Koster outlined that regional income for 2026 is expected to reach more than Rp5.3 trillion, dominated by pendapatan asli daerah (PAD) of over Rp3.9 trillion. According to his explanation reported by NusaBali and other local media, the PAD projection is based on observed collection trends and a more cautious approach to estimating receipts.

The draft allocates PAD across several components: about Rp2.7 trillion from regional taxes, around Rp385 billion from retributions, roughly Rp196 billion from the management of separated regional assets, and approximately Rp572 billion from other legitimate local income. This structure indicates that not every category of own-source revenue is being reduced; tax and asset income targets are maintained or slightly increased compared with earlier planning figures.

Local reporting also notes that some factions in DPRD Bali, including Golkar, have questioned whether the 2026 revenue assumptions are too conservative and have raised concerns about reliance on SiLPA and planned borrowing to close the deficit. Koster has responded that the chosen targets aim to ensure fiscal continuity and avoid overstating income, presenting the RAPBD as a realistic budgeting exercise rather than a forecast of economic contraction.

Tourist levy as a key revenue source

A major element of Bali’s revenue plan is the foreign tourist levy (Pungutan Wisatawan Asing, PWA). For 2026, the province has set a PWA revenue target of Rp500 billion, with the figure incorporated into the budget’s revenue side. Koster has acknowledged publicly that meeting this target depends on strengthening collection systems and improving coordination with central government institutions and tourism stakeholders.

Data presented by provincial officials and reported in local media show that PWA receipts have grown but remain below earlier expectations. In 2025, total levy collections reached around Rp369 billion, up from about Rp318 billion in 2024, but still under the Rp500 billion target set for that year. The 2026 target therefore assumes both continued tourism growth and higher compliance with levy payments.

Separately, monitoring reports on the implementation of the levy in 2026 indicate that receipts were Rp244 billion by late August, against the full-year target of Rp500 billion, and that many visitors had yet to pay, reflecting an incomplete collection rate. These figures underline that achieving the 2026 PWA target will require sustained improvements in collection mechanisms and enforcement.

How the deficit will be financed

The initial 2026 draft budget frames the Rp759 billion deficit as manageable within the province’s financing plan. Koster has stated that net financing will cover the gap, with projected financing receipts of more than Rp1 trillion sourced from the estimated SiLPA of the 2025 budget and financing outlays of about Rp243 billion for principal repayments on existing regional loans.

Subsequent deliberations have already altered the numbers. When DPRD Bali later approved the 2026 budget, both revenue and spending were increased from the original draft, and the deficit was revised upward to around Rp834 billion. More recently, discussions on the 2026 revised budget (Perubahan APBD 2026) have further adjusted the fiscal framework, with reports of a planned deficit of roughly Rp842 billion and additional borrowing to supplement SiLPA in covering financing needs.

These changes indicate that while Koster initially defended the draft RAPBD as realistic and fiscally sustainable, the province’s 2026 budget posture remains subject to legislative negotiation and shifting revenue and spending assumptions. The foreign tourist levy and broader PAD performance will be central to whether the final deficit remains within the range outlined in the original draft.

Sources

• NusaBali
• IDN Times Bali
• Gesuri
• DiswayBali.id
• Balikini.net
• Merdeka
• Detikcom (Bali section)
• Bali Post / Balipost.com
• Denpasar24
• Kabar Bali Satu