Government Allocates Rp329.5 Trillion for Defence in 2027 State Budget Draft

The government has allocated Rp329.5 trillion in the 2027 State Budget Draft (RAPBN) for Indonesia’s defence function. “To support this policy direction, the Defence Function budget in the 2027 fiscal year State Budget Draft is planned at Rp329,472.0 billion (Rp329.5 trillion),” states Book II of the Financial Note, page 4-42, as quoted on Wednesday (19/8). Compared with the outlook for the 2026 fiscal year, the figure represents an increase of around Rp30 trillion. In the 2026 fiscal year, the Defence Function outlook is estimated at Rp299.1 trillion.

The government explained that the budget will be disbursed for strategic outputs including the procurement and maintenance of primary weapons systems (alutsista) and non-alutsista, and the construction and procurement of defence facilities and infrastructure. It will also cover research and development of the defence industry, strengthening of reserve and supporting components, and the conduct of military operations.

The government said the move also responds to global geopolitical dynamics and anticipates increasingly complex security threats. The government is committed to strengthening the national defence and security system. “This strategic step is directed at safeguarding state sovereignty and protecting the territorial integrity of the Republic of Indonesia,” the document states.

The Defence Function policy for the 2027 fiscal year is directed at continuing the development of the defence posture through measures including: modernisation and maintenance of alutsista, non-alutsista, and defence facilities and infrastructure; development of a sound, advanced, independent and competitive defence industry; implementation of defence and security operations; strengthening of reserve and supporting components; strengthening of territorial defence capabilities; and strengthening of cyber, cryptography and signals capabilities to safeguard national resilience in the digital era.

The Defence Function budget is implemented by the Ministry of Defence and the National Resilience Institute. “In the 2022-2025 period, the realisation of the Defence Function budget increased from Rp150,276.9 billion in the 2022 fiscal year to Rp348,580.9 billion in the 2025 fiscal year,” the document states.