Indonesia submits 2027 Draft State Budget to Parliament

President Prabowo Subianto has submitted the 2027 Draft State Budget (RAPBN) and Financial Note to the House of Representatives. The budget outlines several key fiscal priorities, including a total state expenditure of Rp4,097.2 trillion against a projected revenue of Rp3,426.0 trillion, resulting in a deficit of 2.40 percent of GDP.

Major allocations include Rp820.9 trillion for education, with Rp240 trillion specifically earmarked for the Free Nutritious Meal (MBG) program to benefit 60.6 million people. Food security is prioritized with a budget of Rp195.3 trillion, the highest in five years, aimed at increasing production and supporting farmers. Social protection spending is set at Rp549.9 trillion, a 10 percent increase from 2026.

Regarding personnel and health, Minister of Finance Purbaya Yudhi Sadewa noted that no additional budget for teacher salary increases is currently planned for 2027, though it remains subject to future fiscal capacity. Additionally, Health Minister Budi Gunadi Sadikin confirmed that BPJS Kesehatan premiums will not increase in 2027.

Financial markets responded positively to the announcement, with the Jakarta Composite Index (IHSG) rising 1.59 percent and the rupiah strengthening against the US dollar.