Indonesian Political, Business & Finance News

Food security budget set at Rp195.3 trillion in 2027 state budget draft

| Source: ANTARA_ID Translated from Indonesian | Economy
Food security budget set at Rp195.3 trillion in 2027 state budget draft
Image: ANTARA_ID

The government has set a food security programme budget allocation of Rp195.3 trillion in the 2027 Draft State Revenue and Expenditure Budget (RAPBN).

“The food security budget remains high at Rp195.3 trillion,” said Finance Minister Purbaya Yudhi Sadewa during a press conference on the RAPBN and Financial Note for the 2027 Fiscal Year in Jakarta on Friday.

The allocation represents a 2.3 percent increase compared to the 2026 state budget outlook of Rp190.9 trillion.

Food security policy is directed, among other things, at increasing food productivity, for instance through intensification and extensification. The budget will also be used to maintain food price stability and supply, improve the welfare of farmers and fishermen, strengthen climate-adaptive food security, and gradually support food sovereignty.

In detail, the budget is planned to be channelled for the development of 2.7 million hectares of rice fields, the creation of 100,000 hectares of new paddy fields, the optimisation of 200,000 hectares of agricultural land, and the provision of 23,528 units of pre-harvest agricultural machinery for the food crop sub-sector.

Furthermore, the allocation covers the revitalisation of 616 hectares of salt ponds, the development of 55,785 hectares of irrigation networks, the ongoing construction of 14 dams, and facility improvements for 400 fishing villages.

The government also plans to use the food security budget to distribute food aid to 5,000 people to control food insecurity, as well as to run a cheap food movement across 38 community groups.

President Prabowo Subianto stated that the deficit in the 2027 RAPBN is targeted at Rp671.2 trillion, or 2.40 percent of Gross Domestic Product (GDP), down from Rp689.1 trillion, or 2.68 percent of GDP, in the 2026 state budget. State revenue is estimated to reach Rp3,426 trillion, up from Rp3,153.6 trillion in the 2026 budget, while state expenditure for 2027 is planned at Rp4,097.2 trillion, an increase from Rp3,842.7 trillion in the 2026 budget.

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