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[POLITICS] · Indonesia · 17 sources

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Indonesia rejects IMF loan offer as 2027 budget discussions proceed

Indonesia is managing its 2027 national budget through various fiscal strategies and departmental allocations. President Prabowo Subianto confirmed that the government rejected an IMF loan offer, opting instead to rely on domestic financing and budget efficiencies. He noted that the closure of 290 unprofitable State-Owned Enterprises (BUMN) has already generated approximately Rp50 trillion in savings.

Several key ministries have finalized or proposed their 2027 budget requirements to the DPR. The Ministry of Defense has secured an increased budget of Rp189 trillion, up from an initial indicative ceiling of Rp139 trillion. The Ministry of Primary and Secondary Education has a set ceiling of Rp61.1 trillion but has requested an additional Rp157.76 trillion to fund school revitalization and student scholarships.

Other institutional budget updates include the Constitutional Court (MK) requesting a Rp67 billion increase to reach a total of Rp427.8 billion, and Commission XIII approving a Rp555.98 billion additional allocation for the MPR RI. Meanwhile, legal experts are calling for the timely passage of the Asset Forfeiture Bill by December 2026 to bolster anti-corruption efforts.

Entities

Abdul Mu'ti · DPR RI · Indonesia · International Monetary Fund · Ministry of Defense · Prabowo Subianto · Purbaya Yudhi Sadewa · Sjafrie Sjamsoeddin

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