Indonesia targets private funding to meet Rp 8,705 trillion investment need

Indonesia's Ministry of Finance has outlined significant economic projections and fiscal strategies for 2026 and 2027. Deputy Finance Minister Juda Agung reported that the Indonesian capital market successfully raised Rp 125 trillion in the first half of 2026, with the investor base growing to 28 million people. The recent launch of a Gold Exchange Traded Fund (ETF) is viewed as a step toward deepening market liquidity and transparency.

However, a substantial funding gap exists for future development. Indonesia's investment needs for 2027 are estimated at Rp 8,705 trillion, while the state budget (APBN) is only capable of financing approximately Rp 459 trillion. This necessitates heavy reliance on private sector financing, including banks and the capital market, to cover the remaining Rp 7,973 trillion.

To bolster state revenue, the government plans to expand its tax base in 2027. Officials indicated a focus on underutilized sectors, such as income generated from renting out multiple properties. The government intends to use the developing Coretax system and enhanced data integration to improve taxpayer profiling and revenue optimization.