Budget Cuts: Rosan Admits Difficulty in Reaching Rp2,322 Trillion Investment Target for 2027
The Minister of Investment and Downstreaming/Head of BKPM, Rosan Perklar Roeslani, has admitted that his ministry’s budget for 2027 will make it quite difficult to pursue the investment realisation target, which is set at Rp2,322 trillion.
Rosan stated that while the investment target for next year has increased significantly, the budget for the Ministry of Investment and Downstreaming/BKPM is actually below the ceiling previously agreed upon with Commission XII of the Indonesian House of Representatives (DPR RI).
“Looking at it, because of this significant increase, we are finding it somewhat difficult with the existing budget,” Rosan said during a working meeting with Commission XII of the DPR RI in Jakarta on Tuesday, 1 September 2026.
Previously, Commission XII of the DPR RI had agreed on a 2027 budget ceiling for the Ministry of Investment and Downstreaming/BKPM of Rp1.304 trillion. However, based on a joint letter from the Minister of Finance and the Minister of National Development Planning/Head of Bappenas dated 5 August 2026, the ministry’s budget allocation was set lower, at Rp974.84 billion.
On the other hand, the government is targeting investment realisation for 2027 to reach Rp2,322 trillion. This target represents a 13.8 per cent increase compared to the 2026 investment target of Rp2,041.3 trillion.
He stated that his department will continue to strive to achieve the target with the available budget. However, the government is open to the possibility of requesting additional funds through the Supplementary Budget (ABT) if required during the fiscal year.
“We will always strive with the budget provided. We will see later if we can request ABT funding during the course of the year,” he said.
According to Rosan, additional funding will be needed to support investment as one of the drivers of national economic growth. The government is targeting economic growth for 2027 to be in the range of 5.8 per cent to 6.5 per cent.
Of the total Rp974.84 billion ceiling, Rp505.3 billion is allocated for management support programmes, while Rp469.54 billion will be used for capital investment and downstreaming programmes.
From the reduction of Rp349.7 billion compared to the previous indicative ceiling, the Ministry of Investment and Downstreaming/BKPM will allocate Rp201.8 billion for the development of the OSS 2.0 system. The remaining budget will be used to strengthen competitiveness in attracting investment and to accelerate the growth of national industry.