Government Unveils Eight Fiscal Policy Priorities for the 2027 State Budget

Finance Minister Purbaya Yudhi Sadewa has established eight programmes that will be the focus of fiscal policy in the 2027 State Budget (APBN). “Fiscal policy is focused on supporting eight clusters of National Priority Work Programmes and one enabler group comprising 60 work programmes,” Purbaya said during a DPR RI Plenary Session in Jakarta on Tuesday (9/6). The eight programmes cover food sovereignty; energy and water self-sufficiency; education; health; downstreaming and industrialisation; infrastructure, housing and disaster resilience; strengthening the people’s economy and village development; and poverty reduction. The supporting group encompasses strengthening defence and security, law enforcement, governance, accelerating digitalisation, and economic diplomacy. “Therefore, the APBN must be kept healthy, credible and sustainable,” the Finance Minister stated. 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 the community, 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. Various innovative financing schemes will be developed through synergies with the Danantara Investment Management Agency, Special Mission Vehicles, Public Service Agencies and the Sovereign Wealth Fund to support the national economic transformation. Accordingly, the fiscal posture for 2027 is designed collaboratively, directionally and measurably.