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Indonesia targets Rp2,908 trillion from tax, customs, excise in 2027

Jakarta (ANTARA) – Finance Minister Purbaya Yudhi Sadewa said in Jakarta on Friday that Indonesia is targeting Rp2,908 trillion in tax, customs and excise revenue under the 2027 Draft State Budget, an increase of 10.5 percent from the 2026 budget projection.

The target comprises Rp2,591.4 trillion in tax revenue, up 12.1 percent from the 2026 projection of Rp2,310.8 trillion, and Rp316.6 trillion in customs and excise revenue, down 1.2 percent from Rp320.6 trillion.

Purbaya said that higher tax compliance and a broader tax base would be the main drivers of tax revenue growth.

Non-tax state revenue is targeted at Rp517.4 trillion in 2027, down 10 percent from the 2026 projection of Rp575.1 trillion. Grants are set at Rp700 billion, down 56 percent from Rp1.5 trillion.

Total state revenue is targeted at Rp3,426 trillion, up 6.8 percent from the 2026 projection of Rp3,208.1 trillion.

The government plans to spend Rp4,097.2 trillion in 2027, up 3.9 percent from the 2026 projection of Rp3,942.4 trillion.

Central government spending is set at Rp3,362.2 trillion, up 3.6 percent from the 2026 projection of Rp3,245.5 trillion.

Spending by ministries and agencies is targeted at Rp1,504.7 trillion, down 7.7 percent from the 2026 projection of Rp1,630.4 trillion, while non-ministerial and agency spending is set at Rp1,857.5 trillion, up 15 percent from Rp1,615.1 trillion.

Transfers to regional governments are targeted at Rp735 trillion, up 5.5 percent from the 2026 projection of Rp696.9 trillion.

Overall, the 2027 Draft State Budget carries a deficit of Rp671.2 trillion, equivalent to 2.40 percent of gross domestic product. The primary deficit is targeted at Rp20.9 trillion.

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Translator: Imamatul Silfia, Martha Herlinawati Simanjuntak
Editor: Primayanti
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