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Indonesia approves 2027 state budget with record Rp4,100 trillion expenditure
Indonesia's Finance Ministry has outlined several key fiscal directions for the 2026 and 2027 fiscal years. The DPR Budget Committee has approved the 2027 state budget (APBN) posture, which includes a record-breaking expenditure projected to reach approximately Rp4,106 trillion, with a budget deficit set at Rp671.16 trillion (2.4 percent of GDP).
Finance Minister Suahasil Nazara stated that the 2027 budget will prioritize human capital and infrastructure. To fund upcoming free public school programs, the government will utilize the existing education allocation in the 2027 draft budget, estimated between Rp820 trillion and Rp824 trillion, rather than creating a supplementary budget.
Regarding investment and taxation, the government expects tax incentives to reach Rp576.4 trillion in 2026 to bolster purchasing power and investment. To comply with the Global Minimum Tax (GMT) framework, Indonesia is designing alternative investment incentives, such as import duty exemptions, to maintain economic appeal.
Additionally, the Ministry reported a significant capital inflow of Rp140.7 trillion as of mid-September 2026, primarily through State Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI). To manage economic stability, Nazara has also instructed public service agencies (BLU) to avoid pursuing excessively high interest rates amidst rising monetary trends.
Entities
Bank Indonesia · DPR RI · Indonesia · Ministry of Finance of Indonesia · Suahasil Nazara
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Tax incentives for the 2026 fiscal year are estimated to reach Rp576.4 trillion, or 2.24 percent of GDP. www.matamata.com
- [○ 1 SOURCE] The 2027 draft budget allocates approximately Rp820.9 trillion for education. en.tempo.co
- [○ 1 SOURCE] Foreign capital inflows to Indonesia reached Rp140.7 trillion as of September 14, 2026, primarily through SBN and SRBI. www.viva.co.id
- [○ 1 SOURCE] Finance Minister Suahasil Nazara instructed public service agencies (BLU) not to focus solely on high interest rates. www.cnbcindonesia.com
- [○ 1 SOURCE] The 2027 state budget expenditure is projected to exceed Rp4,000 trillion. www.jpnn.com
- [○ 1 SOURCE] Indonesia is developing alternative investment incentives to comply with the Global Minimum Tax framework. en.antaranews.com
- [○ 1 SOURCE] The DPR Budget Committee approved a 2027 state budget with expenditure of Rp4,106.26 trillion and a deficit of Rp671.16 trillion. katadata.co.id