Prabowo vows low budget deficit, rigorous fiscal discipline
President Prabowo Subianto has proposed a low fiscal deficit for the 2027 state budget bill though more efficient spending and higher revenue, even while holding onto an ambitious economic growth target.
President Prabowo Subianto has outlined a budget proposal for the upcoming 2027 state budget bill that aims for a low fiscal deficit and rigorous fiscal discipline. In his Financial Notes address, Prabowo revealed that his administration anticipates a deficit of Rp 671.2 trillion (US$37.68 billion), which equates to 2.4 percent of the projected gross domestic product for 2027.
This proposed deficit is lower than the 2.68 percent of GDP target set for the current year's budget. The government projects that the actual deficit for 2026 will be higher at 2.85 percent of GDP, representing a slight improvement from the 2.92 percent recorded in 2025, which was just under the 3 percent legal limit established following the Asian Financial Crisis in the late 1990s.
Prabowo emphasized that the ideal deficit is minimal, and the government's aim is a balanced budget. The budget bill containing the proposed deficit will undergo extensive deliberation before being passed into law to guide policy execution next year.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
