Indonesia proposes Rp4,097.2 trillion budget for 2027

The Indonesian government has unveiled the 2027 State Budget Draft (RAPBN 2027), proposing an ambitious spending plan of Rp4,097.2 trillion. The budget targets an economic growth rate of 6% and an inflation rate of 2.5%, alongside a deficit of 2.4% of GDP.

Key allocations include Rp435.49 trillion for infrastructure—covering basic facilities, connectivity, energy, and food—and Rp348.5 trillion for education, which introduces new concepts such as 'Sekolah Rakyat' for low-income families and 'Sekolah Unggul Garuda' for high-achieving students. Additionally, the subsidy budget is set to rise by 15.1% to Rp387.88 trillion, covering energy (electricity, LPG, and fuel) and non-energy sectors like fertilizer and credit interest.

While the government maintains an optimistic outlook, some economists have expressed concerns that the 6% growth target may be unrealistic given global economic uncertainties and domestic fragility. Legislators have also emphasized that infrastructure and health facility investments must be accompanied by sufficient human resource development to be effective.