Indonesia Passes 2027 State Budget: What Are the Key Targets?
Lawmakers approved 4,106 trillion rupiah in spending and 3,435.1 trillion rupiah in revenue, keeping the deficit at 2.40% of GDP.
- On Tuesday, September 29, 2026, the Indonesian parliament passed President Prabowo Subianto's 2027 State Budget Bill into law, projecting spending at 4,106 trillion rupiah to achieve 6% economic growth.
- Lawmakers approved the bill despite ongoing investor concerns regarding fiscal discipline and central bank independence, which intensified following the surprise resignation of Governor Perry Warjiyo in July.
- To maintain a fiscal deficit of 2.40% of GDP, the government raised revenue targets while targeting 2.5% inflation and stabilizing the rupiah at 17,500 per US dollar.
- The administration's flagship free meals program received 240 trillion rupiah, a 5% increase, while the government established 14 key indicators measuring public welfare and environmental quality.
- House Budget Agency Chair Said Abdullah stated higher growth targets are necessary to expand Indonesia's economic pie, emphasizing the administration's continued strategy to raise export and investment value.
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House passes 2027 state budget bill into law - Economy
Spending and revenue next year were approved at Rp 4.1 quadrillion and 3.4 quadrillion, respectively, representing increases of about 4 percent and 7 percent from the latest estimates for this year's budget.
Indonesian parliament passes 2027 state budget bill into law
Indonesia Passes State Budget Seeking 6% Growth in 2027
Indonesia’s parliament approved a 2027 state budget targeting 6% economic growth, the fastest pace in more than a decade, as President Prabowo Subianto seeks to accelerate the economy while keeping the fiscal deficit within legal limits.
Before making a decision, the Chairman of the Budget Agency (Banggar) of the Indonesian House of Representatives, Said Abdullah, submitted a report regarding economic projections and targets.
“The time has come when we seek the approval of the factions of the Draft Law on the State Revenue and Expenditure Budget of the 2027 budget year, can it be approved to be passed into law?” asked Puan in a plenary meeting, at the Nusantara II building of the Senayan Parliament Complex in Jakarta, Tuesday (29/9/2026).
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