Two Years of Prabowo-Gibran: State Budget Becomes Main Engine for Priority Programmes
Jakarta, CNBC Indonesia – The Prabowo-Gibran government is nearing its second anniversary, during which the State Budget (APBN) has continued to play a strategic role in supporting the implementation of its priority agenda.
Finance Minister Suahasil Nazara said that over the past two years, the APBN has not only served to maintain economic stability, but has also become an instrument for strengthening the quality of human resources, expanding access to basic services and driving economic growth.
“The APBN is here to ensure that the government’s development priorities can be carried out and that the public feels the benefits. We are not only talking about numbers in the APBN, but about how every rupiah the state spends can strengthen the quality of people, raise productivity and ultimately drive higher economic growth,” Suahasil said, quoted from a press release on Thursday (8 October 2026).
Over the two years of the Prabowo-Gibran administration, APBN support for priority agendas has been reflected in a range of programmes in education, health and efforts to strengthen public productivity.
In education, the government is running the Free Nutritious Meals (MBG) programme, which as of 31 August 2026 had reached 56.99 million beneficiaries. The government has also expanded the Sekolah Rakyat programme, Sekolah Unggul Garuda, the revitalisation of schools and madrasahs, and digital learning.
In health, the APBN supports the expansion of the Free Health Check (Cek Kesehatan Gratis) programme, which reached 70.3 million people in 2025 and 99.1 million people as of September 2026. The government has also allocated funding for the renovation of 10,000 community health centres (puskesmas) and the construction and completion of facilities at regional public hospitals (RSUD) across various regions.
Beyond supporting priority programmes, the APBN also plays a role in maintaining economic and fiscal stability amid global volatility. Indonesia’s economy has continued to grow at around 5%, while fiscal and financial sector reforms are being pursued to keep the state budget healthy and strengthen national economic resilience.
“We also continue to optimise the role of the APBN in protecting the public and the economy from various risks, one of which is through strengthening supervision and enforcement against illegal economic activities that threaten to erode state revenue and disrupt healthy economic activity,” Suahasil explained.
Targets for the 2027 APBN
Entering the third year of the administration, the role of the APBN is set to become even more strategic. The 2027 APBN is not only intended as an instrument for maintaining stability, but is also to be optimised as a catalyst for economic growth.
The government is targeting economic growth of 6% in 2027, up from the 5.4% target in the 2026 APBN. To achieve this, fiscal policy will be directed at strengthening investment, boosting production activity, increasing exports, creating formal jobs and enhancing the competitiveness of the national economy.
“Going forward, the APBN must become even more optimal. We want the APBN to remain healthy and credible, but at the same time able to provide sufficiently strong momentum for growth. Fiscal discipline and growth are not contradictory. Both must go hand in hand,” Suahasil stressed.
In the 2027 APBN, the government plans state spending of Rp 4,097.2 trillion, state revenue of Rp 3,426 trillion and a deficit of 2.4% of gross domestic product (GDP). This fiscal framework is designed to provide adequate fiscal space to support development agendas while maintaining fiscal sustainability.
Efforts to drive growth will not rely on the APBN alone. The government will strengthen synergy with the private sector and Danantara to boost investment, expand production capacity, promote downstreaming (hilirisasi) and create jobs. The government has previously stated that to reach 6% growth in 2027, investment growth needs to be accelerated to around 7%.
“The tagline I have consistently promoted over the past two years is: the APBN drives growth, the APBN protects and a credible APBN. This is the reflection of two years of government under President Prabowo and Vice President Gibran, and I hope we can continue the great work we have undertaken for a better Indonesia,” said Suahasil.
“Accordingly, the two years of this government serve as a foundation for entering the next stage of development. The APBN will continue to be directed at maintaining stability, protecting the public, strengthening the foundations of development, and driving higher and more inclusive economic growth,” Suahasil concluded.