Purbaya Proposes Rp49.8 Trillion Budget for Ministry of Finance in 2027

Finance Minister Purbaya Yudhi Sadewa has proposed an indicative budget ceiling for the Ministry of Finance for the 2027 fiscal year amounting to Rp49.8 trillion. This figure represents a modest increase compared to the previous year’s ceiling of Rp47.13 trillion. The proposal was presented during a working meeting with House of Representatives Commission XI on Monday (15/6). Purbaya explained that the proposed Ministry of Finance budget for 2027 is divided into three main functions: the public services function at Rp45.52 trillion, the economic function at Rp284.71 billion, and the education function at Rp3.99 trillion. “We respectfully request the chair and members of Commission XI to grant approval for the indicative budget ceiling of the Ministry of Finance for the 2027 fiscal year, proposed at Rp49.8 trillion,” Purbaya stated during the meeting. The budget will be focused through five programmes designed to support the National Priority Work Programme and various strategic government activities. One of the main programmes is the fiscal policy, financial sector, and economy programme, with an allocation of Rp36.33 billion sourced entirely from pure rupiah. Purbaya noted that the programme’s budget will be used to support six echelon I units within the Ministry of Finance, namely the Directorate General of Economic and Fiscal Strategy, the Directorate General of Financial Sector Stability and Development, the Directorate General of Customs and Excise, the Directorate General of Fiscal Balance, the Directorate General of Financing and Risk Management, and the Directorate General of Budget. “The fiscal policy, financial sector, and economy programme amounts to Rp36.33 billion sourced from pure rupiah,” the state treasurer said. According to him, this allocation is necessary to support the Ministry of Finance’s duties in maintaining fiscal stability, strengthening public services, and encouraging inclusive and sustainable economic transformation. Amid persistent global volatility, the Ministry of Finance is considered to have a strategic role in mitigating economic uncertainty through optimisation of the State Budget. Purbaya affirmed that the State Budget will continue to function as a shock absorber while maintaining fiscal sustainability. Various policies are being pursued to protect public purchasing power, maintain economic stability, and preserve growth momentum. “The strength of domestic economic fundamentals, supported by increasingly solid policies, serves as the primary foundation to navigate the dynamics of 2027,” Purbaya said. The Finance Minister then outlined fiscal performance developments up to the end of May 2026. He stated that state revenue had reached Rp1,185 trillion, a portion of the Rp3,153.6 trillion target, marking a 19.1 per cent increase compared to the same period the previous year. This achievement, he noted, was driven by reforms to the taxation and excise systems, as well as enforcement actions against tax delinquents and smuggling practices. Meanwhile, state expenditure realisation up to the end of May 2026 was recorded at Rp1,365.4 trillion from a target of Rp3,842.7 trillion, representing annual growth of 34.4 per cent. The increase was supported by accelerated spending, strengthened oversight, improved efficiency, and backing for national priority work programmes. “It is also directed to provide benefits to the public through pro-growth and pro-welfare programmes in recent years,” Purbaya added.