Indonesia Finance Minister Purbaya Announces FY2027 Transfer Boost and Near‑6% Growth Outlook

Finance Minister Purbaya Yudhi Sadewa said the government plans to raise the Transfer to Regions (TKD) to as much as Rp90 trillion by the 2027 fiscal year, adding roughly Rp40 trillion of fiscal space. The programme will focus on enhancing regional revenue, improving spending quality and using low‑interest, long‑term financing through entities such as PT Sarana Multi Infrastruktur, while digitising the transfer system and strengthening central‑regional fiscal coordination.

In a public lecture at China’s Nankai University, Purbaya highlighted Indonesia’s strong macro fundamentals: Q1 2026 GDP growth of 5.61 % year‑on‑year, inflation at 3.08 %, and a stable exchange rate. He linked potential U.S.–Iran peace talks and falling global oil prices to a possible decline in Pertamax fuel prices, strengthening the economic foundation.

The minister also noted a stimulus package of Rp26.34 trillion for the second half of 2026, aimed at transport, vocational training and food assistance, and reiterated the government’s ambition to push annual growth close to 6 % in 2026 and reach 8 % by 2029.