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Indonesia’s 2027 draft budget targets 6% growth
JAKARTA, thekabarnews.com—Indonesia proposed state spending of 4,097.2 trillion rupiah for 2027. The government seeks to accelerate economic growth while keeping the budget deficit within statutory...
Kusnadi Assaini
August 16, 2026 3 Min Read
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Indonesia proposed a state spending of 4,097.2 trillion rupiah for the 2027 draft budget, aiming for economic growth while limiting the budget deficit.The expected deficit is around 671.2 trillion rupiah, or 2.40% of GDP, which aligns with statutory limitations.Key allocations include 820.9 trillion rupiah for education, 549.9 trillion for social protection, and 244.9 trillion for health care.The government anticipates a growth rate of 6%, with inflation at 2.5% and a targeted poverty rate of 6-6.5%.RAPBN 2027 remains a proposal and awaits approval from lawmakers, with potential adjustments during deliberations.
JAKARTA, thekabarnews.com—Indonesia proposed state spending of 4,097.2 trillion rupiah for 2027. The government seeks to accelerate economic growth while keeping the budget deficit within statutory limits.
The government submitted the 2027 Draft State Budget (RAPBN 2027) with its Financial Note to legislators in Jakarta on August 14, 2026.
The proposal is based on state revenue of Rp3,426 trillion. There is an estimated deficit of around Rp671.2 trillion or 2.40 percent of gross domestic product.
Finance Ministry materials show that the government expects to collect Rp2,908 trillion in tax revenue. It expects Rp517.4 trillion in non-tax state revenue.
Central government expenditure would reach Rp3,362.2 trillion, while transfers to regional administrations would total Rp735 trillion.
The proposed deficit sits at the upper limit of the 1.8–2.4 percent range. The government and the House of Representatives agreed upon that range during preliminary budget deliberations.



That ratio remains below Indonesia’s statutory ceiling of 3 percent of GDP.
RAPBN 2027 assumes economic growth of 6 percent and inflation of 2.5 percent. It also uses an exchange-rate assumption of Rp17,500 per US dollar and a 6.9 percent yield for 10-year government bonds.
The government assumes an Indonesian crude oil price of $75 per barrel. Oil lifting is set at 610,000 barrels per day. Gas lifting is set at 954,000 barrels of oil equivalent per day.
These figures fall within several ranges agreed upon during preliminary discussions with lawmakers.
In June, the government and the House’s Commission XI endorsed growth of 5.8–6.5 percent, inflation of 1.5–3.5 percent and an exchange rate between Rp16,800 and Rp17,500 per dollar. This information is according to the Finance Ministry’s Directorate General of Economic and Fiscal Strategy.
“With the right economic strategy and prudent, sustainable fiscal policy, I am confident Indonesia’s economy can grow between 5.8 and 6.5 percent in 2027,” President Prabowo Subianto previously said, as quoted by the Finance Ministry’s Media Keuangan.
The government will direct fiscal policy toward eight priority clusters: food sovereignty; energy and water independence; education; health; downstream processing and industrialization; infrastructure, housing and disaster resilience; community and village economies; and poverty reduction.
The Finance Ministry allocates Rp820.9 trillion for education, Rp549.9 trillion for social protection, Rp244.9 trillion for health and Rp195.3 trillion for food security.




These allocations aim to improve educational access and strengthen preventive healthcare. They seek to make social assistance more accurately targeted and raise the productivity of farmers and fishers.
RAPBN 2027 also targets a poverty rate of 6–6.5 percent and open unemployment of 4.30–4.87 percent.
The government plans to improve spending efficiency. It will use integrated socioeconomic data to target assistance. It seeks to strengthen fiscal coordination between national and regional authorities.
RAPBN 2027 remains a government proposal. The figures and program allocations may change as the House deliberates the draft before lawmakers approve it as the legally binding 2027 state budget.
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