Jakarta (ANTARA) – Indonesian President Prabowo Subianto announced that the deficit target for the 2027 Draft State Budget (RAPBN) is set at 2.40 percent of gross domestic product (GDP).
The target is lower than the 2.68 percent deficit target set in the 2026 State Budget (APBN).
During his speech on the 2027 Draft State Budget and Financial Note at the Parliament Complex in Jakarta on Friday, the president emphasized that the deficit should be kept as low as possible, with the ultimate goal of achieving a balanced budget.
“We will strive to cut it down even further,” Prabowo stated.
State expenditure for 2027 is projected at Rp4,097.2 trillion (approximately US$229.24 billion), up from Rp3,842.7 trillion (US$215 billion) in the 2026 budget.
Meanwhile, state revenue is expected to reach Rp3,426 trillion (US$191.69 billion), up from Rp3,153.6 trillion (US$176.44 billion) in 2026.
Budget financing for 2027 is set at Rp671.2 trillion (US$37.55 billion), down from Rp689.1 trillion (US$38.56 billion) allocated in the 2026 budget.
Outlining the macroeconomic assumptions for 2027, Prabowo said inflation is projected to remain at around 2.5 percent. The yield on 10-year government bonds (SBN) is estimated at 6.9 percent, while the rupiah exchange rate is projected at Rp17,500 per US dollar.
The Indonesian Crude Price (ICP) is projected at US$75 per barrel, while oil lifting is targeted at 610,000 barrels per day (bpd) and gas lifting at 954,000 barrels of oil equivalent per day (boepd).
Supported by stronger economic growth and more effective budget allocation, the government targets reducing the poverty rate in 2027 to between 6.0 percent and 6.5 percent, improving from the 2026 target range of 6.5 percent to 7.5 percent.
The open unemployment rate is also projected to decline to between 4.30 percent and 4.87 percent in 2027, from the 2026 target range of 4.44 percent to 4.96 percent.
Meanwhile, the Gini ratio is expected to improve to between 0.362 and 0.367, compared with the 2026 target range of 0.377 to 0.380. The Human Capital Index is targeted to increase to 0.575.
“We will realize these figures through holistic and consistent fiscal reforms,” the president asserted.
He further stressed that the government will optimize state revenue by minimizing financial leakages while ensuring spending efficiency.
Moreover, the government will ensure that social protection programs are more accurately targeted while continuing to develop innovative and sustainable financing mechanisms.
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Translator: Rizka Khaerunnisa, Uyu Liman
Editor: Primayanti
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