Indonesian Political, Business & Finance News

Prabowo's 8 Priority Programmes for 2027 to Absorb Rp635.9 Trillion Budget

| Source: CNBC Translated from Indonesian | Economy
Prabowo's 8 Priority Programmes for 2027 to Absorb Rp635.9 Trillion Budget
Image: CNBC

Minister for National Development Planning and Head of Bappenas, Rachmat Pambudy, has revealed that the national priority work programmes (PKPN) of President Prabowo Subianto’s administration will absorb around Rp635.9 trillion of the 2027 state budget (APBN) expenditure. He stated that from the total indicative spending ceiling for ministries and institutions (K/L) in 2027, which amounts to Rp1,380.9 trillion, Rp635.9 trillion is allocated for PKPN spending, plus Rp1.2 trillion for supporting expenditure for the PKPN cluster foundation. “The largest spending focus is directed towards human resource development, reducing the number of poor people, strengthening food and energy security, as well as strengthening infrastructure and the people’s economy and villages,” Rachmat said during a working meeting with Committee IV of the Regional Representative Council (DPD) in Jakarta on Monday (22/6/2026). The detailed PKPN budget for 2027 designed by Bappenas consists of an indicative ceiling for the food sovereignty cluster worth Rp35.20 trillion, energy and water self-sufficiency at Rp35.36 trillion, education at Rp347.6 trillion, health at Rp36.85 trillion, downstreaming and industrialisation at Rp1.38 trillion, infrastructure, housing, and disaster resilience at Rp25.12 trillion, the people’s economy and villages at Rp178.1 billion, and poverty reduction at Rp154.20 trillion. Previously, the Ministry of National Development Planning/Bappenas had also outlined the indicative funding requirements for the government’s eight national priority policies in 2027, totalling Rp1,529.94 trillion. The largest funding requirement is for programmes under National Priority 4, valued at Rp644.72 trillion, which focuses on strengthening human resource development, science, technology, education, health, sports achievement, gender equality, and empowering women, youth, and persons with disabilities. The second largest is National Priority 2 with an indicative funding requirement of Rp337.18 trillion, encompassing strengthening the national defence and security system and promoting national self-reliance through self-sufficiency in food, energy, water, the Islamic economy, digital economy, green economy, and blue economy. Next is National Priority 6, valued at Rp310.40 trillion, consisting of the programme to build from villages and from the grassroots for economic growth, economic equality, and poverty eradication. National Priority 7 follows with an indicative funding requirement of Rp47.01 trillion, covering programmes to strengthen political, legal, and bureaucratic reform, and to bolster the prevention and eradication of corruption, narcotics, gambling, and smuggling. National Priority 8 requires Rp41.19 trillion, including programmes related to efforts to strengthen the harmonisation of life with the natural and cultural environment, and to increase interfaith tolerance to achieve a just and prosperous society. National Priority 5 is next with a funding requirement of Rp40.13 trillion, encompassing the programme to continue downstreaming and develop natural resource-based industries to increase domestic added value. Lastly, National Priority 1 relates to the programme to reinforce the ideology of Pancasila, democracy, and human rights, with an indicative funding requirement of Rp1.42 trillion. Funding for activities prioritised in the 2027 Government Work Plan will be met through government financing sources and cooperation between the government and business entities or other parties, considering cost effectiveness and efficiency as well as risk control.

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