House Plenary Session Approves Preliminary 2027 State Budget Draft

The 23rd Plenary Session of the Indonesian House of Representatives (DPR RI) for the 2025-2026 Session Period V has officially endorsed the results of the preliminary discussions on the 2027 State Budget Draft (RAPBN) agreed between the government and the DPR’s Budget Committee (Banggar). “This will serve as a guideline in the preparation of the 2027 State Budget Draft,” said House Speaker Puan Maharani, who chaired the plenary session, on Thursday (2/7/2026). Following this agreement, the government will use the preliminary draft’s range of measures as the basis for setting the initial proposed figures for the State Revenue and Expenditure Budget Bill (RUU APBN) and its accompanying Financial Note on 16 August 2026. The 2027 State Budget Bill will subsequently be discussed in greater detail with the DPR’s Commission XI before being enacted into law by the end of October 2026. In the initial agreement, the government and the Budget Committee settled on a number of baseline references for drafting the RAPBN 2027, covering macroeconomic assumptions, development targets, and the macro-fiscal posture. The agreed detailed macroeconomic assumptions are as follows: Economic Growth of 5.8-6.5%; Inflation Rate of 1.5-3.5%; Rupiah Exchange Rate of Rp16,800-17,500 per US dollar; 10-year Government Bond Interest Rate of 6.5-7.3%; Indonesian Crude Oil Price of US$70-95 per barrel; Oil Lifting of 605,000-620,000 barrels per day; and Gas Lifting of 951,000-990,000 barrels of oil equivalent. The agreed 2027 development targets are: Poverty Rate of 6.0-6.5%; Extreme Poverty Rate of 0%; Gini Ratio of 0.362-0.367; Open Unemployment Rate of 4.3-4.87%; Human Capital Index of 0.575; Farmer Welfare Index of 0.8038; Proportion of Formal Job Creation at 40.81%; GNI per capita of US$5,800-5,840; and Environmental Quality Index of 76.84. The agreed preliminary macro-fiscal posture for 2027 is as follows: State Revenue of 12.01-12.40% of GDP, comprising taxation at 10.16-10.50% of GDP, Non-Tax State Revenue (PNBP) at 1.85-1.89% of GDP, and Grants at 0.002-0.003% of GDP. State Expenditure is set at 13.81-14.80% of GDP, consisting of Central Government Expenditure at 11.26-12.01% of GDP and Transfers to Regions at 2.55-2.79% of GDP. The Primary Balance ranges from a surplus of 0.45% of GDP to a deficit of 0.14% of GDP. The overall Deficit is set at 1.8-2.4% of GDP. Investment Financing is set at minus 0.50-0.90% of GDP, and the Total Debt-to-GDP Ratio is targeted at 40.31-40.64% of GDP.