Indonesian Political, Business & Finance News

President Prabowo Proposes Rp4,097 Trillion State Budget for 2027, Focusing on Eight Priority Programmes

| Source: VIVA Translated from Indonesian | Economy
President Prabowo Proposes Rp4,097 Trillion State Budget for 2027, Focusing on Eight Priority Programmes
Image: VIVA

President Prabowo Subianto announced that the government is planning a state expenditure budget of Rp4,097.2 trillion in the 2027 Draft State Revenue and Expenditure Budget (RAPBN), an increase from the Rp3,842.7 trillion allocated in the 2026 State Budget (APBN).

Prabowo stated that the government spending will be focused on eight National Priority Work Programmes (PKPN), which encompass food sovereignty; energy and water independence; education; health; downstreaming and industrialisation; infrastructure, housing, and disaster resilience; strengthening the people’s economy; and poverty reduction.

“These eight priorities are supported by strengthening defence and security, law enforcement, governance, accelerating digitalisation, and economic diplomacy,” Prabowo said during the Plenary Session of the DPR RI and the Submission of the 2027 RAPBN in the Senayan Parliament Complex on Friday.

To support this expenditure, state revenue in the 2027 RAPBN is planned at Rp3,426 trillion, up from Rp3,153.6 trillion in the 2026 APBN. The budget structure is designed to keep the fiscal deficit manageable, with the 2027 deficit projected at 2.40 percent of Gross Domestic Product (GDP), while the government plans to draw Rp671.2 trillion in financing.

Prabowo emphasised that the 2027 RAPBN is aligned with the government’s goal of maintaining an expansive yet collaborative, targeted, and measurable budget to accelerate economic growth and improve public welfare. He added that the budget must strengthen economic transformation towards high-value-added activities, enhance the reliability of social protection programmes, and empower micro, small, and medium enterprises (MSMEs), farmers, fishermen, teachers, and vulnerable workers.

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