Indonesian Political, Business & Finance News

Official: House of Representatives Passes 2027 State Budget of Rp 4,106 Trillion

| Source: CNBC Translated from Indonesian | Economy
Official: House of Representatives Passes 2027 State Budget of Rp 4,106 Trillion
Image: CNBC

The House of Representatives (DPR) has officially ratified the Draft Law on the 2027 State Budget (APBN) as Law.

The ratification took place during the 7th Plenary Session of the first session of the 2026-2027 parliamentary term, presided over by the Speaker of the House, Puan Maharani.

“Is it approved to become law?” asked Puan, to which the meeting participants responded in the affirmative. Puan then struck the gavel to formalise the ratification.

The meeting leadership confirmed that all political factions—including PDI Perjuangan, Golkar, Gerindra, NasDem, PKB, PBD, PAN, and Democrats—approved and accepted the 2027 State Budget Bill to be enacted into law.

The details of the approved state budget structure are as follows:

Macroeconomic Indicators:

  1. Economic growth: 6.0%

  2. Inflation rate: 2.5%

  3. Rupiah exchange rate: Rp17,500/US$1

  4. 10-year Government Securities (SBN) interest rate: 6.9%

  5. Indonesian crude oil price: US$75 per barrel

  6. Oil lifting: 612,500 barrels per day

  7. Gas lifting: 954,000 barrels of oil equivalent per day

Furthermore, the 2027 State Budget was drafted while maintaining the fiscal deficit as initially proposed in the financial note, amounting to Rp 671.16 trillion, or 2.4% of Gross Domestic Product (GDP).

While the deficit target remains unchanged, there have been adjustments to the state revenue and expenditure targets. For state revenue, the latest agreement between the government and the DPR Budget Committee (Banggar) stands at Rp 3,435.10 trillion, up from the initial proposal of Rp 3,426.03 trillion. State expenditure targets have also been adjusted to Rp 4,106.26 trillion, from the original proposal of Rp 4,097.19 trillion.

Detailed breakdown of the 2027 State Budget structure:

  1. State Revenue: Rp 3,435.10 trillion
  1. Tax Revenue: Rp 2,911.95 trillion (previously Rp 2,907.95 trillion)

  • Taxes: Rp 2,593.35 trillion (previously Rp 2,591.35 trillion)

  • Customs and Excise: Rp 318.6 trillion (previously Rp 316.6 trillion)

  1. Non-Tax State Revenue (PNBP): Rp 522.48 trillion (previously Rp 517.41 trillion)

  2. Grant Revenue: Remains at Rp 666.3 trillion, unchanged from the initial proposal

  1. State Expenditure: Rp 4,106.26 trillion
  1. Central Government Expenditure: Rp 3,371.26 trillion (previously Rp 3,362.19 trillion)

  • Ministry/Agency Expenditure: Rp 1,556.89 trillion (previously Rp 1,504.74 trillion)

  • Non-Ministry/Agency Expenditure: Rp 1,814.36 trillion (previously Rp 1,857.45 trillion)

  1. Transfers to Regions (TKD): Maintained at Rp 735 trillion

  1. Primary Balance target: Designed with a deficit of Rp 20.85 trillion

  2. Budget financing target: Maintained at Rp 671.16 trillion

View JSON | Print