Indonesian Political, Business & Finance News

House Plenary Session Approves Preliminary 2027 State Budget Draft

| Source: CNBC Translated from Indonesian | Economy
House Plenary Session Approves Preliminary 2027 State Budget Draft
Image: CNBC

The 23rd Plenary Session of the DPR RI for the 2025-2026 Session Period has officially reached an agreement on the results of the preliminary discussions for the 2027 State Budget Draft (RAPBN), as negotiated between the government and the DPR Budget Committee (Banggar).

“This will serve as a guideline in the preparation of the 2027 State Budget Draft,” stated the Speaker of the House, Puan Maharani, during the plenary session on Thursday (2/7/2026).

Following this agreement, the government will use the parameters of the initial 2027 RAPBN draft as the basis for proposing the initial figures for the State Budget Bill (RUU APBN) and its Financial Note on 16 August 2026. The 2027 State Budget Bill will undergo more detailed discussions with Commission XI of the DPR before being enacted as law by the end of October 2026.

In the initial agreement, the government and the DPR Budget Committee agreed on several preliminary benchmarks for the preparation of the 2027 RAPBN, ranging from macroeconomic assumptions and development targets to the macro-fiscal posture.

The agreed macroeconomic assumptions are as follows:

  1. Economic Growth: 5.8-6.5%

  2. Inflation Rate: 1.5-3.5%

  3. Rupiah Exchange Rate: IDR 16,800 - 17,500/US$

  4. 10-year SBN Interest Rate: 6.5-7.3%

  5. Indonesian Crude Oil Price: US$70-95/barrel

  6. Oil Lifting: 605,000-620,000 barrels per day

  7. Gas Lifting: 951,000-990,000 barrels of oil equivalent

The agreed development targets for 2027 are as follows:

  1. Poverty Rate: 6.0-6.5%

  2. Extreme Poverty Rate: 0%

  3. Gini Ratio: 0.362-0.367

  4. Open Unemployment Rate: 4.3-4.87%

  5. Human Capital Index: 0.575

  6. Farmer Welfare Index: 0.8038

  7. Proportion of Formal Job Creation: 40.81%

  8. GNI per capita: US$5,800-5,840

  9. Environmental Quality Index: 76.84

The agreed initial macro-fiscal posture for 2027 is as follows:

  1. State Revenue: 12.01-12.40% of GDP

    1. Taxation: 10.16-10.50% of GDP

    2. Non-Tax State Revenue (PNBP): 1.85-1.89% of GDP

    3. Grants: 0.002-0.003% of GDP

  2. State Expenditure: 13.81-14.80% of GDP

    1. Central Government Expenditure: 11.26-12.01% of GDP

    2. Transfers to Regions: 2.55-2.79% of GDP

  3. Primary Balance: Surplus of 0.45% of GDP to a deficit of 0.14% of GDP

  4. Deficit: 1.8-2.4% of GDP

  5. Investment Financing: -0.50% to -0.90% of GDP

  6. Debt-to-GDP Ratio: 40.31-40.64% of GDP

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