Antara News·Indonesia·Friday, August 28, 2026 at 04:24 AM

Indonesia vows sustainable and credible 2027 state budget

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Bayu, Kenzu

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa said the government is committed to maintaining a healthy, credible, and sustainable 2027 State Budget (RAPBN).

He said this would be achieved by increasing state revenue, improving the quality and efficiency of government spending, and pursuing innovative and prudent budget financing.

"The State Budget will be maintained on a prudent and sustainable footing through various measures. First, we will continue to optimize state revenue by improving compliance and expanding the tax base, strengthening the Coretax system, optimizing natural resources, and providing targeted fiscal incentives to encourage investment," Sadewa said in Jakarta on Thursday (August 27).

He made the statement at a meeting of the House of Representatives (DPR RI) Budget Committee (Banggar) on the first-level discussion of the draft law on the 2027 State Budget (APBN).

He added that government spending would continue to be directed toward higher-quality programs to support economic growth. At the same time, the government would continue to manage budget financing prudently and innovatively while keeping the fiscal deficit and debt within safe limits.

For context, state revenue in the 2027 RAPBN is projected to reach Rp3,426 trillion, up 6.8 percent from the 2026 outlook, equivalent to 12.23 percent of gross domestic product (GDP).

The projected revenue comprises Rp2,908 trillion in tax revenue, Rp517.4 trillion in Non-Tax State Revenue (PNBP), and Rp0.7 trillion in grants.

Tax revenue consists of Rp2,591.4 trillion in tax receipts and Rp316.6 trillion in customs and excise receipts.

In line with strengthening economic activity and ongoing tax reforms, the tax revenue ratio is projected to reach 10.38 percent of GDP.

To achieve this target, Sadewa assured that the government would continue to pursue sustainable tax reforms, including harmonizing tax policies to strengthen the state's revenue base and revenue-collection capacity.

"Improving compliance is key to optimizing revenue through the use of technology, stronger inter-agency coordination, and more effective law enforcement," he said.

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