2027 State Budget and Overseeing National Transformation

There is an old way of reading the state budget that we have become too accustomed to. We see it as a series of figures: how much state revenue, how much spending, how much deficit, how much targeted growth, and how large the budget for ministries and institutions. From there, the debate shifts to whether the state is too wasteful, too expansive, too cautious, or too optimistic.

That way of reading is not wrong. But for the 2027 State Budget, it no longer feels sufficient.

Because what appears in the President’s presentation is not merely an annual budget. Something bigger is being attempted: changing the function of the state budget from an instrument for financing activities into an architecture for national transformation.

The opening sentence itself signals this. The state budget is described as a ‘tool of struggle’ to protect the people, strengthen the nation, realise the ideals of independence, and achieve a better life. That choice of words matters. It positions the budget not only as a matter of state accounting, but as an instrument for changing circumstances.

That is why the economic and fiscal strategy for 2027 does not only speak about growth. The President’s presentation mentions transformation towards high-value economic activity, the effectiveness of flagship programmes, social protection, empowerment of micro, small and medium enterprises, support for farmers and fishers, central-regional harmonisation, as well as eradication of corruption and law enforcement.

If read at a glance, it all looks like a list of policies. But if read with a systems-thinking approach, it becomes clear that the government is actually trying to improve several of Indonesia’s basic structures at once.

Healthcare is being strengthened through the renovation of 10,000 community health centres across 7,285 sub-districts and the construction of 514 health laboratories. Hospital capacity is being expanded through the construction and revitalisation of 441 regional public hospitals, including strengthened services for cancer, heart disease, stroke, kidney disease, and maternal and child health. School renovations are being accelerated with the target that all educational units are in good, safe, clean and fit-for-learning condition.

But on the other hand, the transformation does not stop at social services. The government also wants to establish a Strategic Mineral and Commodities Exchange with an Indonesia Reference Price for key export commodities.

Unproductive state-owned enterprise assets are to be optimised while maintaining strategic state ownership. Solar energy is to be developed up to 100 GW while replacing diesel power plants, with potential electricity production cost savings estimated at Rp73.9 trillion per year.