Government Sets 8 Fiscal Policy Focuses for 2027

Finance Minister Purbaya Yudhi Sadewa has established eight programmes that will become the focus of fiscal policy in the 2027 State Budget. The fiscal policy is focused on supporting eight clusters of the National Priority Work Programme and one supporting group consisting of 60 work programmes. The eight programmes cover food sovereignty; energy and water independence; education; health; downstreaming and industrialisation; infrastructure, housing, and disaster resilience; strengthening the people’s economy and village development; and poverty reduction. The supporting group includes strengthening defence and security, law enforcement, governance, accelerating digitalisation, and economic diplomacy. To support this agenda, the government is optimising state revenue through tax reform and digitalisation, expanding the revenue base, and strengthening the governance of non-tax state revenue. On the spending side, the government continues to improve the quality of expenditure to be more efficient, productive, targeted, and have a real impact on society, including through strengthening social protection based on the National Single Socio-Economic Data system. The government will also manage financing prudently and innovatively to maintain fiscal resilience.