Indonesian Political, Business & Finance News

Prabowo's 8 Priority Policies to Require Rp1.529 Trillion in Funding by 2027

| Source: CNBC Translated from Indonesian | Politics
Prabowo's 8 Priority Policies to Require Rp1.529 Trillion in Funding by 2027
Image: CNBC

The government has recorded an indication of funding needs amounting to Rp1,529.94 trillion to continue implementing President Prabowo Subianto’s eight national priority policies in 2027. This indication of funding needs is included in the draft document of the 2027 Government Work Plan (RKP) compiled by the Ministry of National Development Planning (PPN)/Bappenas. “The 2027 National Priorities and Priority Programmes will be implemented through various funding sources, both by ministries/institutions (K/L) through non-operational expenditure supported by operational expenditure, as well as non-K/L expenditure,” quoted from the draft RKP 2027 document, Friday (8/5/2026). The largest funding need is for programmes under National Priority 4, amounting to Rp644.72 trillion. National Priority 4 involves Strengthening Human Resource Development (HRD), Science, Technology, Education, Health, Sports Achievements, Gender Equality, and Strengthening the Role of Women, Youth, and Persons with Disabilities. Second is National Priority 2 with an indicated funding need of Rp337.18 trillion. Included in National Priority 2 are Stabilising the National Defence and Security System and Promoting National Independence through Food, Energy, Water, Islamic Economy, Digital Economy, Green Economy, and Blue Economy Self-Sufficiency. Next is National Priority 6 programmes amounting to Rp310.40 trillion, consisting of the Building from Villages and from Below Programme for Economic Growth, Economic Equity, and Poverty Eradication. The next largest funding need is for National Priority 6 amounting to Rp310.40 trillion, which includes the Building from Villages and from Below Programme for Economic Growth, Economic Equity, and Poverty Eradication. Next is National Priority 7 with an indicated funding need of Rp47.01 trillion, which includes the Strengthening Political, Legal, and Bureaucratic Reforms Programme, as well as Strengthening Prevention and Eradication of Corruption, Drugs, Gambling, and Smuggling. National Priority 8 requires funding of Rp41.19 trillion, which includes programmes related to efforts to Strengthen Harmonious Life with the Natural Environment and Culture, and Increasing Interfaith Tolerance to Achieve a Just and Prosperous Society. National Priority 5 follows with a funding need of Rp40.13 trillion, covering the Continuing Downstreaming and Developing Natural Resource-Based Industries Programme to Increase Domestic Value Added. Finally, National Priority 1, related to the Strengthening Pancasila Ideology, Democracy, and Human Rights Programme, has an indicated funding value of Rp1.42 trillion. Funding for the priority activities in the 2027 RKP will be met through government financing sources and cooperation between the government and business entities/other parties, considering cost effectiveness and efficiency as well as risk control. “In this regard, the government encourages the utilisation of blended finance mechanisms that position the State Revenue and Expenditure Budget (APBN) as catalytic funding to attract larger investments from non-government sources,” as stated in the RKP 2027. Foreign/domestic financing also needs to be encouraged to function as long-term investments that are beneficial in the future (spending to invest).

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