Finance Minister confident 2027 state budget targets can be achieved

Finance Minister Purbaya Yudhi Sadewa is confident that the targets set in the 2027 Draft State Budget (RAPBN) can be realised.

In the 2027 RAPBN, the budget deficit is set at Rp671.2 trillion, or 2.40 percent of Gross Domestic Product (GDP). State revenue is estimated to reach Rp3,426 trillion, while state expenditure is planned at Rp4,097.2 trillion.

“What President Prabowo Subianto has designed and presented to the DPR will almost certainly be realised by drawing on our considerable experience to date,” Purbaya said at the RAPBN and Financial Note Press Conference for the 2027 Fiscal Year in Jakarta on Friday.

Purbaya said he is optimistic that national economic performance will remain solid and well maintained, supported by controlled macroeconomic stability and government policy backing.

The state treasurer said economic performance in the first half of 2026 provides a strong capital base for the economy heading into 2027.

According to Statistics Indonesia (BPS), national economic growth in the first quarter reached 5.61 percent year-on-year (yoy) and 5.29 percent (yoy) in the second quarter. Although slowing, national economic growth remained above 5 percent.

“This has been achieved because of sound monetary, fiscal and financial sector policies. Going forward, in the second half of this year, we are confident it will be even better, so that we can grow close to 6 percent by the end of 2026,” Purbaya said.

President Prabowo Subianto has set an annual economic growth target of 6 percent (yoy), higher than the 2026 State Budget target of 5.4 percent (yoy).

The rupiah exchange rate is targeted at Rp17,500 per US dollar, inflation is to be kept at around 2.5 percent, the 10-year Government Securities (SBN) interest rate is estimated at 6.9 percent, the Indonesian crude oil price is estimated at US$75 per barrel, oil lifting is targeted at 610,000 barrels per day, and gas lifting at 954,000 barrels of oil equivalent per day.