Finance Minister: Rise in Spending Target Does Not Include Additional Budgets for Ministries and Agencies

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa revealed that the state spending target, raised by Rp9.1 trillion from Rp4,097.2 trillion to Rp4,106.3 trillion in the provisional posture of the 2027 State Budget Draft (RAPBN), does not include additional budget requests submitted by ministries and agencies.

“No, it does not. There are constraints. That is economics. We always face scarcity. So we must choose what is most optimal for the economy. That is what we are doing,” said Purbaya in Jakarta on Monday.

At a working meeting between the government and the House of Representatives’ Budget Committee (Banggar DPR RI) to discuss the provisional posture of the 2027 RAPBN, the state spending target was raised from Rp4,097.2 trillion to Rp4,106.3 trillion, an increase of Rp9.1 trillion.

The increase in the state spending target applies only to the central government budget, namely ministries and agencies, with central government spending raised from Rp3,362.2 trillion to Rp3,371.3 trillion, and ministry and agency spending increased from Rp1,504.7 trillion to Rp1,513.8 trillion.

“We were asked to make efficiencies in some areas, in order to improve performance in others,” said Purbaya.

For context, the government is targeting Indonesian economic growth of 6 percent annually (year on year/yoy) in 2027, as set out in the 2027 State Budget Draft (RAPBN).

President Prabowo Subianto stated that this growth target is higher than the 2026 State Budget target of 5.4 percent.