2027 State Budget: Prabowo Targets 14.8% of GDP, with Deficit Between 1.8%–2.4%

President Prabowo Subianto has announced that the initial draft of the 2027 State Budget (APBN) is designed to maintain a low deficit, estimated at approximately 1.8% to 2.4% of Gross Domestic Product (GDP). This fiscal posture for the upcoming period considers targets for efficient and productive state expenditure valued at 13.62% to 14.8% of GDP, while state revenue is to be optimised at around 11.82% to 12.40% of GDP.

“This is the direction of our national economic and fiscal policy, serving as the preliminary discussion for the 2027 Draft State Budget (RAPBN),” stated Prabowo during a speech at the DPR Building in Jakarta on Wednesday (20/5/2026).

As previously noted, the deficit target within the 2027 Macroeconomic Framework and Fiscal Policy Main Points (KEMPPKF) is significantly lower than the target set in the 2026 State Budget Law, which was Rp 689.1 trillion, or equivalent to 2.68% of GDP. Meanwhile, the realised deficit for the first year of his administration in 2025 reached Rp 695.1 trillion, or 2.92% of GDP, compared to the previous target of 2.78% of GDP, or Rp 662 trillion.

“The State Budget is not merely a national financial document, but a manifestation of our struggle as a nation,” Prabowo emphasised.