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Indonesia targets 2.4% budget deficit and 6% growth for 2027
The Indonesian government is outlining its fiscal strategy for 2027, focusing on economic growth and social protection. Deputy Finance Minister Juda Agung announced that the 2027 state budget deficit is targeted at 2.4 percent of GDP. To achieve this, the government plans to prioritize domestic financing to reduce vulnerability to global market fluctuations.
To avoid the middle-income trap, the government has set ambitious economic growth targets of 6 percent in 2027 and 8 percent by 2029. This vision aims to leverage the country's demographic bonus through increased productivity and job creation.
On the taxation front, the Ministry of Finance is reviewing the Non-Taxable Income (PTKP) threshold to optimize tax revenue while supporting public purchasing power. Additionally, the government intends to continue income tax facilities for approximately 7.5 million workers earning under Rp 10 million per month.
Regarding inflation, Bank Indonesia reported that September 2026 inflation remained within the target range, recording 0.30 percent month-on-month and 3.28 percent year-on-year. The government remains committed to controlling food inflation to protect the welfare of lower-to-middle-income groups.
Entities
Airlangga Hartarto · Bank Indonesia · Destry Damayanti · Indonesia · Juda Agung · Ministry of Finance · PT Sarana Multigriya Finansial · Statistics Indonesia · Suahasil Nazara
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The Ministry of Finance is reviewing changes to the Non-Taxable Income (PTKP) threshold. jawapos.com · www.rri.co.id
- [○ 1 SOURCE] The average daily transaction value for SMF debt securities increased nearly sixfold from normal levels.
- [○ 1 SOURCE] Consumer Price Index (CPI) inflation for September 2026 remained within the target range. www.jpnn.com
- [● 2 SOURCES] Repo transactions using PT Sarana Multigriya Finansial (SMF) corporate bonds and sukuk as underlying have reached Rp1.25 trillion.
- [○ 1 SOURCE] The Indonesian government aims to maintain the 2027 state budget deficit at 2.4 percent of GDP. mediaasuransinews.co.id
- [● 2 SOURCES] Bank Indonesia has expanded the types of securities used as underlying for monetary operations to include high-quality corporate bonds and sukuk.
- [● 2 SOURCES] The government targets 6 percent economic growth in 2027 and 8 percent by 2029 to avoid the middle-income trap. ekonomi.republika.co.id · ekbis.harianjogja.com
- [● 2 SOURCES] September 2026 inflation was 0.30 percent month-on-month and 3.28 percent year-on-year. www.jpnn.com · katadata.co.id
- [● 2 SOURCES] The government is considering raising the Non-Taxable Income (PTKP) threshold. jawapos.com · www.rri.co.id
- [● 3 SOURCES] The 2027 state budget deficit is set at 2.4 percent of GDP. mediaasuransinews.co.id · www.niaga.asia · ekbis.harianjogja.com
- [● 2 SOURCES] The government will continue providing income tax facilities for workers earning under Rp 10 million. minews.id · jawapos.com