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[BUSINESS] · Indonesia · 20 sources

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Indonesia proposes Rp4,097.2 trillion 2027 state budget

Finance Minister Purbaya Yudhi Sadewa has outlined the framework for Indonesia’s 2027 State Budget (RAPBN 2027), proposing a total expenditure of Rp4,097.2 trillion. The government aims to achieve a state revenue target of Rp3,426 trillion, representing a 6.8 percent increase from the 2026 outlook. This revenue growth is expected to be driven by expanded tax bases and improved compliance through intensification and extensification strategies, rather than increasing tax rates.

The 2027 budget is projected to have a deficit of Rp671.2 trillion, or 2.4 percent of GDP. Spending will be directed toward eight national priority clusters, including food sovereignty, energy and water self-reliance, education, health, downstreaming, infrastructure, the people's economy, and poverty reduction. The government also plans to diversify non-tax state revenue (PNBP) by optimizing natural resources, state assets, and services from ministries and agencies.

In recent discussions with the House of Representatives (DPR), Minister Purbaya emphasized the need for fiscal stability and accountability. He noted that the 2025 economy grew by 5.11 percent, with unemployment falling to 4.85 percent as of August 2025. Additionally, the Minister addressed recent corruption investigations within the Directorate General of Customs and Excise, stating that such incidents serve as a catalyst for ongoing institutional reforms to ensure public trust and optimize revenue collection.

Entities

Audit Board of Indonesia · Central Bureau of Statistics · DPR RI · House of Representatives of the Republic of Indonesia · Indonesia · KPK · Komisi Pemberantasan Korupsi · Ministry of Finance · Ministry of Finance of Indonesia · National Disaster Mitigation Agency · Prabowo Subianto · Purbaya Yudhi Sadewa

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