Posted in

Indonesia unveils eight fiscal priorities for 2027 state budget

Jakarta (ANTARA) – Finance Minister Purbaya Yudhi Sadewa has identified eight priority programs that will serve as the focus of fiscal policy under the 2027 State Budget (APBN).”Fiscal policy will be focused on supporting eight clusters of National Priority Work Programs and one enabling cluster comprising 60 work programs,” Purbaya said during a plenary session of the House of Representatives (DPR RI) in Jakarta on Tuesday.The eight priority clusters cover food sovereignty; energy and water self-sufficiency; education; healthcare; downstream industries and industrialization; infrastructure, housing, and disaster resilience; strengthening the people's economy and rural development; and poverty reduction.The supporting cluster includes strengthening defense and security, law enforcement, governance, digital transformation, and economic diplomacy.”Therefore, the state budget must remain healthy, credible, and sustainable,” the minister said.To support those priorities, the government will optimize state revenue through tax reform and digitalization, expansion of the revenue base, and stronger governance of non-tax state revenue (PNBP).On the expenditure side, the government will continue improving the quality of spending to make it more efficient, productive, targeted, and impactful, including through strengthening social protection programs based on the National Socioeconomic Single Data system (DTSEN).The government will also manage financing prudently and innovatively to maintain fiscal resilience.Various innovative financing schemes will be developed through collaboration with the Danantara Investment Management Agency (BPI Danantara), Special Mission Vehicles (SMVs), Public Service Agencies (BLUs), and sovereign wealth funds to support Indonesia's economic transformation.Accordingly, the 2027 fiscal framework has been designed to be collaborative, targeted, and measurable, with the following key indicators:State budget deficit projected at 1.8 percent to 2.4 percent of gross domestic product (GDP);State revenue targeted at 11.82 percent to 12.40 percent of GDP;State expenditure projected at 13.62 percent to 14.80 percent of GDP.