A Critical Constitutional Analysis of Expanding the State Budget Deficit Limit through a Government Regulation in Lieu of Law (Perppu) - Assessing the “Compelling Urgency” Requirement

Sep 10, 2026

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The study examines the discourse on Indonesia’s proposal to increase the State Budget (APBN) deficit ceiling beyond 3% of GDP via a Government Regulation in Lieu of Law (Perppu). It attributes fiscal pressure to both external shocks—driven by Middle East geopolitical tensions affecting energy supply chains—and internal fiscal inefficiencies and policy choices. Using a normative juridical approach supported by statistical indicators on oil prices, deficit trends, and capital outflows, the analysis evaluates whether the Perppu issuance fulfills the constitutional “compelling urgency” standard, concluding it may fall short due to self-inflicted urgency and that APBN-P mechanisms could be more constitutionally appropriate and procedurally accountable.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages33

Reading Time1 h 23 min

AccessFree to download

Introduction

Legal and fiscal basis for deficit limits

Research framing and questions

Abstrak / Abstract

Background and rationale

Method and analytical scope

Constitutional assessment and conclusions

A Critical Constitutional Analysis of Expanding the State Budget Deficit Limit through a Government Regulation in Lieu of Law (Perppu): Assessing the “Compelling Urgency” Requirement Yono SugiAnom Darmawan1*, Amelia Karima Eliana2, Jennifer Kristian Mantiri3 1,2,3 University of Airlangga *[Correspondence:](Correspondence: yonosugianomdarmawan@gmail.com)[ ](Correspondence: yonosugianomdarmawan@gmail.com)[yonosugianomdarmawan@gmail.com](Correspondence: yonosugianomdarmawan@gmail.com) | Received: 25 May 2026 | Accepted: 21Agustus 2026 | Published: 23 Agustus 2026 | | --- | --- | --- | Abstrak Penelitian ini mengkaji wacana mengenai usulan peningkatan batas defisit Anggaran Pendapatan dan Belanja Negara (APBN) Indonesia melampaui batas maksimum 3% dari Produk Domestik Bruto (PDB) melalui Peraturan Pemerintah Pengganti Undang-Undang (Perppu) . Penelitian ini dilatarbelakangi oleh meningkatnya tekanan ekonomi global akibat ketegangan geopolitik di Timur Tengah, khususnya gangguan terhadap rantai pasok energi global yang berpotensi memberikan dampak signifikan terhadap Indonesia sebagai negara pengimpor minyak neto. Namun demikian, penelitian ini berpendapat bahwa guncangan eksternal bukan satu-satunya faktor yang memengaruhi tekanan defisit fiskal, karena inefisiensi fiskal internal dan pilihan kebijakan juga dapat berkontribusiterhadap memburuknya posisi fiskal negara. Dari perspektif hukum tata negara, kebijakan tersebut perlu dikajiberdasarkan Undang-Undang Nomor 17 Tahun 2003 tentang Keuangan Negara dan Pasal 22 Undang-Undang Dasar Negara Republik Indonesia Tahun 1945, sebagaimana ditafsirkan melalui Putusan Mahkamah Konstitusi Nomor 138/PUU-VII/2009, yang menetapkan parameter konstitusional penerbitan Perppu berdasarkan adanya keadaan “kegentingan yang memaksa.”Penelitian ini menggunakan metode yuridis normatif yang dilengkapi dengan analisis statistik terhadap pergerakan harga minyak global, perkembangan defisit fiskal, dan indikator arus keluar modal. Analisis difokuskan pada pertanyaan apakah peningkatan batas defisit yang diusulkan semata-mata disebabkan oleh guncanganekonomi eksternal serta apakah penerbitan Perppu telah memenuhi persyaratankonstitusional mengenai adanya “kegentingan yang memaksa.” Penelitian ini berpendapat bahwa kebijakan yang diusulkan belum sepenuhnya memenuhikriteria konstitusional tersebut karena sebagian tekanan fiskal bersumber dari inefisiensi yang dihasilkan secara internal, sehingga menciptakan apa yang dapatdisebut sebagai bentuk “kegentingan yang ditimbulkan sendiri” (self-inflicted urgency) . Oleh karena itu, mekanisme yang tersedia dalam kerangka penganggaranyang berlaku, khususnya perubahan APBN (APBN-P), dapat menjadi alternatif yanglebih sesuai secara konstitusional dan lebih akuntabel secara proseduraldibandingkan dengan penerbitan Perppu. Keywords: DefisitAPBN; Perppu; Ihwal Kegentinganyang Memaksa. Abstract This study examines the discourse surrounding the proposed increase in Indonesia’s state budget (APBN) deficit beyond the statutory ceiling of 3% of GDP through a Government Regulation in Lieu of Law (Perppu). The research is motivated by intensifying global economic pressures arising from geopolitical tensions in the Middle East, particularly disruptions to global energy supply chains that may significantly affect Indonesia as a net oil-importing country. Nevertheless, this study argues that external shocks alone do not account for fiscal deficit pressures, as internal fiscal inefficiencies and policy choices may also contribute to the deterioration of the fiscal position. From a constitutional and legal perspective, the proposed policy must be assessed against Law No. 17 of 2003 on State Finance and Article 22 of the 1945 Constitution, as interpreted by Constitutional Court Decision No. 138/PUU-VII/2009, which establishes the constitutional parameters for the issuance of a Perppu based on the existence of a “compelling urgency.” This research employs a normativ

FAQs

What constitutional standard is used to assess issuing a Perppu to raise the APBN deficit ceiling?

The study assesses the issuance against the constitutional “compelling urgency” requirement, referencing Law No. 17 of 2003 and Article 22 of the 1945 Constitution as interpreted by Constitutional Court Decision No. 138/PUU-VII/2009.

Does the proposed deficit expansion depend only on external economic shocks?

No. The study argues that external shocks are not the sole driver; internal fiscal inefficiencies and policy choices also contribute to worsening fiscal conditions.

Why does the study consider the Perppu option potentially constitutionally insufficient?

Because part of the fiscal pressure is characterized as “self-inflicted urgency,” meaning the conditions may not fully satisfy the constitutional criterion for compelling urgency.

Sep 10, 2026

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