DPR Budget Committee: Rp4,097.2 trillion 2027 state budget spending must deliver significant impact

Jakarta (ANTARA) - The Budget Committee of the Indonesian House of Representatives (Banggar DPR) has stressed that spending in the 2027 State Budget (APBN), estimated to reach Rp4,097.2 trillion, must deliver significant impact.

Banggar DPR chairman Said Abdullah said that for the first time in history, state spending has surpassed Rp4,000 trillion.

“However, behind the large figure lies an equally large responsibility to achieve substantial state revenue,” Said said in a statement in Jakarta on Thursday.

According to him, the government must be careful regarding taxation because when household economic conditions tend to lag behind Gross Domestic Product (GDP) growth, the public is sensitive to new forms of taxation.

Said noted the target increases in Income Tax (PPh) of Rp64.8 trillion and Value Added Tax (PPN) of Rp132.8 trillion in next year’s Draft State Budget (RAPBN).

He expressed hope that the increase targets are natural, driven by economic growth, rather than from new taxation that could potentially burden the public.

On the contrary, he continued, there is actually a decline in the non-tax state revenue (PNBP) target in the 2027 RAPBN. From the 2026 outlook, PNBP realisation is estimated at Rp575 trillion, but the 2027 RAPBN targets Rp517.4 trillion.

“We hope this target will be recalculated,” he said.

Nevertheless, Said stressed that fundamentally, the future state budget must contain clarity on the objectives of each programme as well as measurable and direct correlation of each programme with economic growth, equity, and economic justice.

Therefore, he said, this principle will continue to be upheld in the upcoming discussions of the 2027 RAPBN with the government.