Prabowo Targets 2027 State Budget Deficit at 2.4 Percent, Lower Than 2026

President Prabowo Subianto has announced that the government is targeting a state budget deficit of 2.4 percent of gross domestic product (GDP) for the 2027 fiscal year, equivalent to Rp 671.2 trillion. This target is lower than the 2.68 percent deficit outlined in the 2026 State Budget Law. He explained that the 2027 Draft State Budget (RAPBN) plans for state spending to reach Rp 4,097.2 trillion, a historic high, with state revenue targeted at Rp 3,426 trillion. ‘The financing is planned at Rp 671.1 trillion, with a deficit of 2.4 percent of GDP. We will strive to keep it smaller,’ Prabowo stated during the presentation of the RAPBN 2027 and Financial Note. The President noted that the 2027 deficit target is a reduction from the 2026 budget plan, which projected a deficit of Rp 689.1 trillion. He added that the government is not choosing between growth and prudence, but is committed to achieving both while maintaining the state budget.