Antara News·Indonesia·Wednesday, September 23, 2026 at 09:26 AM

Indonesia's 2027 spending to exceed Rp4,000 trillion

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Imamatul Silfia, Kuntum Khaira

Spending will be directed toward programs aimed at improving productivity, healthcare, education and social protection,

Jakarta (ANTARA) - Indonesia's government spending is projected to exceed Rp4,000 trillion ($223.2 billion) for the first time in 2027, with the budget focused on improving human capital and infrastructure, Finance Minister Suahasil Nazara said on Wednesday.

“This is the first time in the history of the Republic of Indonesia that state spending has exceeded Rp4,000 trillion. This is not only about large spending, but also about a great responsibility,” Nazara said at the ANTARA Business Forum in Jakarta.

Spending will be directed toward programs aimed at improving productivity, healthcare, education and social protection, while infrastructure investment will support services linked to human capital development, he said.

The government will also coordinate its spending with state investment agency Danantara and other financial sector authorities, Nazara said.

The government has proposed total state spending of Rp4,097.2 trillion in the 2027 draft budget, up 3.9 percent from the 2026 outlook. The allocation comprises Rp3,362.2 trillion in central government spending and Rp735 trillion in transfers to regional governments.

Central government spending will focus on improving efficiency and the quality of public services while supporting household purchasing power and sustainable development, the government has said.

Transfers to regional governments are intended to improve the quality of local spending and promote more balanced and sustainable development.

State revenue is projected at Rp3,426 trillion in 2027, up 6.8 percent from the 2026 outlook, equivalent to 12.23 percent of gross domestic product (GDP).

The revenue target includes Rp2,908 trillion in tax revenue, Rp517.4 trillion in non-tax state revenue and Rp0.7 trillion in grants.

Tax revenue is projected at Rp2,591.4 trillion, while customs and excise revenue is targeted at Rp316.6 trillion. The government has set the 2027 budget deficit at Rp671.2 trillion, or 2.40 percent of GDP.

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