President Prabowo Highlights Strong Fiscal Performance, Outlines 2027 Budget Priorities

President Prabowo Subianto has emphasised that the State Budget (APBN) not only functions as an instrument of state financial management but also serves as a primary tool for maintaining economic stability and improving public welfare. Speaking during the submission of the 2027 Draft State Budget (RAPBN) and Financial Note at the DPR RI Parliamentary Complex, he noted that state revenue up to the end of July 2026 grew by 21.3% compared to the same period the previous year. “The APBN is working optimally,” Prabowo stated.

On the expenditure side, state spending recorded strong growth of 18.2%. Despite this increase, the President highlighted that fiscal discipline was maintained, with the APBN deficit recorded at just 0.91% of Gross Domestic Product (GDP) for the first half of 2026. “This shows that alignment with the people can go hand in hand with prudent budget management,” he stressed.

For the 2027 fiscal year, the government is designing an expansionary but targeted and measured policy. State expenditure is planned at Rp4,097.2 trillion, an increase from Rp3,842.7 trillion in the 2026 APBN. Revenue is targeted at Rp3,426 trillion, with financing set at Rp671.2 trillion and a deficit of 2.40% of GDP, lower than the 2026 target. The government is targeting economic growth of 6% in 2027. Prabowo also instructed the consolidation of goods and services procurement to achieve savings of up to Rp360 trillion through efficiency and digitalisation.