House Budget Body and Government Agree on Changes to 2027 Draft State Budget

The Budget Committee (Banggar) of the House of Representatives (DPR RI) and the government have agreed to change the structure of the 2027 Draft State Budget (RAPBN). Under the agreement, the targets for state revenue and expenditure have both increased by around Rp9.1 trillion from the initial draft in the Financial Memorandum.

Banggar chair Said Abdullah said the adjustment was the result of deliberations between the Budget Committee, the Ministry of Finance, the Ministry of National Development Planning (Bappenas) and Bank Indonesia (BI).

“Based on the Banggar meeting with the Ministry of Finance, Bappenas and Bank Indonesia today, the target for state revenue and grants was recorded at Rp3,426 trillion, rising by Rp9.1 trillion to Rp3,435.1 trillion,” Said said on Monday (7 September).

The increase comes mainly from tax receipts and non-tax state revenue (PNBP). Tax revenue rose from Rp2,908 trillion to Rp2,912 trillion, an increase of Rp4 trillion.

In detail, tax receipts rose by Rp2 trillion from Rp2,591.4 trillion to Rp2,593.4 trillion, while customs and excise revenue increased by Rp2 trillion from Rp316.6 trillion to Rp318.6 trillion.

On the other hand, the PNBP target also rose. From an initial Rp517.4 trillion, PNBP was agreed at Rp522.5 trillion, an increase of Rp5.1 trillion.

“Grant revenue saw no change and remains at Rp0.7 trillion,” Said said.

Adjustments were also made on the expenditure side. In the Financial Memorandum, state spending was initially targeted at Rp4,097.2 trillion. That figure was then agreed to rise to Rp4,106.3 trillion, an increase of around Rp9.1 trillion.

“In detail, central government spending rose from Rp3,362.2 trillion to Rp3,371.3 trillion, or an additional Rp9.1 trillion. This increase comes from ministry and agency (K/L) spending, which was adjusted from Rp1,504.7 trillion to Rp1,513.8 trillion,” Said explained.

Meanwhile, non-ministry/agency spending and transfers to the regions saw no change, remaining allocated at Rp1,857.5 trillion and Rp735 trillion respectively.

Despite the changes on both the revenue and expenditure sides, the DPR’s Budget Committee and the government have maintained the 2027 RAPBN deficit target of 2.40 per cent of gross domestic product (GDP).