Government Allocates Rp820.9 Trillion for 2027 Education Budget

The government has allocated Rp820.9 trillion for education programme spending in the 2027 Draft State Revenue and Expenditure Budget (RAPBN). This allocation represents a 13.9 per cent increase compared to the 2026 state budget education spending outlook of Rp720.8 trillion.

“In accordance with the 1945 Constitution, the state prioritises an education budget of at least 20 per cent of the state budget for the implementation of national education,” said Finance Minister Purbaya Yudhi Sadewa during a press conference on the 2027 RAPBN and Financial Note in Jakarta on Friday.

The education budget is planned to be channelled through central government spending amounting to Rp490.7 trillion, regional transfers of Rp277.1 trillion, and financing of Rp53 trillion.

Planned utilisation of the education programme includes the Indonesia Smart Programme (PIP) for 22.1 million students, the Smart Indonesia Card (KIP) for university students for 1.1 million students, and the Teacher Professional Allowance (TPG) for non-civil servant teachers covering 1.3 million teachers.

Additionally, the Free Nutritious Meal Programme (MBG) will target 60.6 million recipients, alongside the construction of seven Sekolah Unggul Garuda, the renovation of 12,215 schools and madrasahs, and the construction of 100 Sekolah Rakyat as well as the operation of 166 Sekolah Rakyat.

Further allocations include the School Operational Assistance (BOS) for 54.2 million students, Early Childhood Education Operational Assistance (BOP PAUD) for 6.3 million learners, Teacher Professional Allowance for regional civil servant teachers covering 1.7 million teachers, and additional income for 20,700 regional civil servant teachers. The budget will also fund operational assistance for 148 museums and cultural parks, as well as scholarships from the Education Fund Management Institution (LPDP).

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