Indonesia: Indonesia has proposed a state expenditure of Rp4.09 quadrillion (Rp1 million= RM228.40) for 2027 to support eight national priority programmes, as the government targets to achieve a stronger economic growth of six per cent next year. President Prabowo Subianto said the proposed expenditure is higher than the Rp3.84 quadrillion in the 2026 State Budget, while state revenue for 2027 is projected at Rp3.42 quadrillion, up from Rp3.15 quadrillion this year.
According to BERNAMA News Agency, under the proposed budget, economic growth is targeted at six per cent for 2027, higher than the 5.4 per cent target under the 2026 State Budget, while inflation is expected to be maintained at 2.5 per cent. On the fiscal position, financing is proposed at Rp671.2 trillion, with the fiscal deficit projected at 2.40 per cent of gross domestic product (GDP) -- lower than the Rp689.1 trillion in financing and 2.68 per cent deficit under the 2026 State Budget.
President Prabowo expressed the government's aspiration to further reduce the fiscal deficit, aiming for a balanced budget in the future. The 2027 Draft State Budget is set to focus on eight national priority programmes, including food sovereignty, energy and water self-sufficiency, education, health, as well as downstreaming and industrialisation. Other priorities include infrastructure, housing and disaster resilience; strengthening the people's economy and village development; and poverty reduction.
The president highlighted that these priorities are backed by efforts to strengthen defence and security, law enforcement, governance, accelerating digitalisation, and economic diplomacy. With stronger growth and an effective State Budget, Prabowo stated that the poverty rate is targeted at 6.0-6.5 per cent next year, compared with the 2026 target of 6.5-7.5 per cent. The open unemployment rate is aimed at 4.30-4.87 per cent, down from 4.44-4.96 per cent in 2026, while the Gini ratio is targeted to improve to between 0.362 and 0.367 and the Human Capital Index to increase to 0.575.