Indonesia sets Rp4.1q 2027 budget as Prabowo govt targets growth, fiscal discipline

Jakarta, September 29 — Indonesia's House of Representatives (DPR) has approved a budget of Rp4.106 quadrillion (RM931.5 billion) for 2027, with significant allocations dedicated to education, social protection, and food security. Finance Minister Suahasil Nazara revealed that education received the largest share, accounting for Rp824 trillion.

This funding will cover student assistance, university scholarships, school and madrasah renovations, the development of Sekolah Rakyat and Sekolah Unggul Garuda, and other initiatives. Social protection was allocated Rp539.7 trillion to aid low-income, poor, and vulnerable groups, with an emphasis on poverty reduction. Food security saw a budget of Rp195.3 trillion, aimed at strengthening food self-sufficiency and improving the welfare of farmers and fishermen.

Finance Minister Suahasil emphasized that while the 2027 State Budget is designed to navigate global uncertainties and accelerate national development goals, fiscal discipline remains a priority. The budget is structured around eight national priority clusters, including food sovereignty, energy and water independence, education, health, industrialization, infrastructure, and poverty reduction.

The government anticipates a 6% economic growth rate and 2.5% inflation in 2027, with the rupiah exchange rate expected to hover around Rp17,500 against the US dollar. Oil prices are projected at $75 per barrel, with an output target of 612,500 barrels per day and gas at 954,000 barrels of oil equivalent daily. The budget aims to maintain fiscal sustainability through revenue optimization, improved spending quality, and innovative financing methods amid global uncertainties such as geopolitical tensions and trade fragmentation.