Indonesia's 2027 Budget Proposal: Spending Up 4%, Deficit at 2.4% of GDP
Indonesia's 2027 budget proposal raises spending to 4,097.2 trillion rupiah, with a 2.4% deficit and a 6% growth target.
Indonesian President Prabowo Subianto has proposed a 2027 state budget with total spending of 4,097.2 trillion rupiah (about $230 billion), a 4% increase over the 2026 outlook. The plan, submitted to parliament last week, sets an economic growth target of 6% and inflation at 2.5%, with the rupiah assumed at 17,500 per dollar.
New details, obtained from a lawmaker on Tuesday, show defence spending is set to rise sharply to 329.5 trillion rupiah from 229.1 trillion in 2026. Debt interest payments are projected at 650.3 trillion rupiah, up from 582.2 trillion. The flagship free school meals programme receives 240.2 trillion rupiah, slightly above the 229 trillion planned for 2026.
Total revenue is forecast at 3,426 trillion rupiah, with tax revenue contributing 2,908 trillion. The budget deficit is projected at 671.2 trillion rupiah, or 2.40% of GDP, narrower than the 2.85% expected for 2026. Net government bond issuance is planned at 779.9 trillion rupiah.
The proposal also assumes Indonesia crude oil prices at $75 per barrel and oil lifting of 610,000 barrels per day. Energy subsidies (excluding compensation) are set at 273 trillion rupiah, up from 227.3 trillion. Transfers to local governments rise to 735 trillion rupiah.
All figures are subject to parliamentary approval.