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Prabowo sets 6% growth target in Indonesia’s 2027 budget

JAKARTA, thekabarnews.com—President Prabowo Subianto has proposed Rp3,426 trillion in state revenue and Rp4,071.2 trillion in government spending under Indonesia’s draft 2027 state budget. This plan...

Kusnadi Assaini

August 14, 2026 3 Min Read

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Summary

- President Prabowo Subianto proposed Rp3,426 trillion in revenue and Rp4,071.2 trillion in spending for the Indonesia 2027 state budget.
- The budget aims to enhance economic growth and public welfare and focuses on eight National Priority Work Programs.
- Proposed spending and revenue reflect increases of approximately 5.9% and 8.6%, respectively, from the 2026 state budget.
- The government targets 6% economic growth and 2.5% inflation for 2027, with a budget deficit of Rp671.2 trillion.
- The 2027 state budget will undergo parliamentary deliberations and may be revised before approval.

JAKARTA, thekabarnews.com—President Prabowo Subianto has proposed Rp3,426 trillion in state revenue and Rp4,071.2 trillion in government spending under Indonesia’s draft 2027 state budget. This plan places economic growth and public welfare at the center of the country’s fiscal strategy. Prabowo presented the 2027 draft state budget (RAPBN) and its financial note at the Parliamentary Complex in Central Jakarta on Friday, August 14.

The revenue target represents an increase of Rp272.4 trillion (8.6%) from the Rp3,153.6 trillion allocated in the enacted 2026 budget. Proposed expenditure would rise by Rp228.5 trillion, or about 5.9 percent, from Rp3,842.7 trillion.

The Finance Ministry’s official 2026 budget documents confirm the existing revenue and spending baselines, according to Indonesia’s 2026 State Budget.

“We will focus on eight National Priority Work Programs,



namely food sovereignty; energy and water independence; education; health; downstream processing and industrialization; infrastructure, housing and disaster resilience; the people’s economy and village development; and poverty reduction,” Prabowo said.

The eight clusters comprise 60 government programs.

The Finance

Ministry’s updated macroeconomic and fiscal policy framework lists food sovereignty as covering nine programs.

Furthermore, energy and water independence comprises 16 programs, education 13, health four, downstream processing and industrialization five, and infrastructure, housing and disaster resilience five.

The people’s economy and village development and poverty reduction each contain two programs.

The Finance

Ministry outlined these details in its 2027 KEM-PPKF.

“The eight priorities will be supported by stronger defense and security, law enforcement, government governance, accelerated digitalization and economic diplomacy,” Prabowo added.

The government has set its 2027 economic growth target at 6 percent, accompanied by inflation of approximately 2.5 percent.

It assumes an average exchange rate of Rp17,500 per US dollar and a 6.9 percent yield on 10-year government securities.

Those figures remain within the ranges agreed upon during preliminary discussions between the government and the DPR.

Growth is 5.8–6.5 percent, inflation is 1.5–3.5 percent, and the exchange rate is Rp16,800–Rp17,500. Additionally, there is a 10-year bond yield of 6.5–7.3 percent, as reported by the Finance Ministry.

Prabowo said the administration had designed the budget deficit at Rp671.2 trillion,



equivalent to 2.40 percent of gross domestic product. The 2.4 percent ratio reaches the upper limit set during preliminary budget deliberations.

“We understand that the ideal deficit should be as small as possible. Our aspiration is even to achieve a balanced budget,” he said.

The headline revenue and spending figures announced in the supplied material produce a gap of Rp645.2 trillion, not Rp671.2 trillion. The Rp26 trillion discrepancy may indicate a transcription error in one of the reported figures.

The government’s complete financial note and draft budget bill will need to reconcile the totals before parliamentary deliberations proceed.

The government and the DPR may revise the RAPBN during negotiations before lawmakers approve it as the 2027 state budget.

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