Government and DPR Agree on 2027 State Budget Deliberations
The Government and the Indonesian House of Representatives (DPR RI) have agreed on the results of the discussions regarding the 2027 Draft State Budget (RAPBN) and the Government Work Plan (RKP). The Deputy Chairman of the DPR Budget Committee, Wihadi Wijanto, stated that the results of these discussions will serve as the basis for the government in drafting the 2027 State Budget Bill along with its financial note.
This was announced during the 23rd Plenary Session of the DPR, Session Period V in Jakarta on Thursday, 2 July 2026. “The direction of national development policy emphasises accelerating inclusive economic growth and increasing public welfare,” said Wihadi, as quoted from Antara.
The formulation of basic macroeconomic assumptions considers various global challenges, ranging from geopolitical developments and international economic conditions to domestic economic dynamics. Based on this, the government and the DPR have agreed on the following basic macroeconomic assumptions:
Economic growth: 5.86–6.5 per cent
Inflation: 1.5–3.5 per cent
Rupiah exchange rate: Rp 16,800–Rp 17,500 per US dollar
Indonesian Crude Price (ICP): US$ 70–95 per barrel
Oil lifting: 605,000–620,000 barrels per day
Gas lifting: 951,000–990,000 barrels of oil equivalent per day
“The more optimistic economic growth projection is supported by structural economic transformation as a foundation for achieving higher economic growth,” said Wihadi.
Meanwhile, the agreed fiscal policy is expansive yet remains measured and cautious amidst global economic uncertainty. Regarding state revenue, the Budget Committee encourages a gradual increase in the state revenue ratio through the optimisation of tax administration, increased taxpayer compliance, and the expansion of the tax base.
Furthermore, the optimisation of state revenue from natural resources and the adjustment of the taxation system to digital economic developments are also planned. On the expenditure side, the direction of central government spending is focused on high-quality spending to support the achievement of National Priority Work Programmes (PKPN), maintain public purchasing power, and accelerate the eradication of extreme poverty.
The policy direction also aims to improve the quality of human resources and strengthen national research as a foundation for downstreaming and industrialisation. For Transfers to Regions (TKD), the policy is aimed at encouraging more effective and efficient regional spending to support economic growth while increasing public welfare in the regions.
The agreed 2027 macro-fiscal posture is as follows:
State revenue: 12.01–12.40 per cent of Gross Domestic Product (GDP)
State expenditure: 13.81–14.80 per cent of GDP
Primary balance: 0.45–(-0.14) per cent
Deficit: 1.80–2.40 per cent of GDP
Investment financing: 0.50–0.90 per cent
Debt-to-GDP ratio: 40.31–40.64 per cent