Yuna Farhan
Secretary of Advisory Board at The Reform Initiatives (TRI)
The 3 percent deficit limit discourse has resurfaced as the House of Representatives (DPR) deliberates on revisions to the State Finance Law. Chatib Basri’s article in this daily (Kompas, September 30, 2026) candidly examines the relevance of this sacred limit as an anchor for fiscal discipline.
What is interesting about this discourse is that it should not stop at the sacred figure of 3 percent, which must be maintained or changed. A more fundamental question is what kind of state financial architecture ensures responsible fiscal governance and is capable of producing real impacts for the people as the holders of fiscal contracts. This article addresses these two fundamental questions.
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