2027 State Budget: Indonesia Targets Spending of Rp4,106tn

On Thursday, September 24, 2026, the Indonesian government and the House of Representatives Budget Agency reached an agreement on the 2027 State Budget Bill, totaling Rp4,106 trillion. This represents a slight increase from the previous spending plan of Rp4,097 trillion. Central government spending is allocated at Rp3,371 trillion, surpassing the government's initial proposal of Rp3,362 trillion.

Meanwhile, ministerial/institutional spending rose to Rp1,556 trillion, an increase of Rp52 trillion from the government's initial estimate of Rp1,504 trillion.

Deputy Chair of the DPR Budget Agency, Muhidin Mohamad Said, explained that the special policy for ministerial/institutional spending aims to continue priority development areas, reinforced by sharpening development direction through the National Development Planning Agency (PKPN). Notably, non-ministerial/institutional spending decreased to Rp1,814 trillion, down from the government's proposed budget of Rp1,857 trillion.

In terms of state revenue, both parties agreed on a target of Rp3,435 trillion for the 2027 Budget Bill. This revenue is expected to be generated from tax revenues of Rp2,911 trillion, comprising Rp2,593 trillion in taxes and Rp318 trillion in customs and excise. Additionally, non-tax state revenues (PNBP) will amount to Rp522.48 trillion, along with grants of Rp666.3 trillion.

Finance Minister Suahasil Nazara remarked that the discussions surrounding the 2027 State Budget Bill occur amidst challenging global conditions. Consequently, efforts are necessary to further strengthen the Indonesian economy.

Suahasil emphasized the commitment to maintaining fiscal policy, stating that it must remain prudent but not passive. The 2027 fiscal policy is designed to be expansive, collaborative, targeted, and measurable, aiming to maintain growth momentum, protect the public, and create space for investment.