Indonesia sets 2027 budget deficit target at 2.4% of GDP

Indonesia has budgeted Rp4,106.3 trillion in state expenditure for 2027 against a revenue target of Rp3,435.1 trillion, Finance Minister Suahasil Nazara said. The planned deficit is Rp671.2 trillion, equivalent to 2.4% of gross domestic product.

In remarks cited on 29 October 2026, Suahasil said the budget would help Indonesia pursue economic growth of 6% in 2027. Fiscal measures would focus on investment, production, exports, formal employment and national competitiveness, while preserving fiscal discipline and credibility.

The government also intends to work more closely with private businesses and Danantara to increase investment, expand production capacity, support downstream processing and generate jobs. It previously said investment would need to grow by around 7% to achieve the 2027 economic growth target.

Reviewing President Prabowo Subianto’s first two years in office, Suahasil said spending had prioritised education, healthcare, social protection and productivity. The government’s free nutritious meals programme had reached 56.99 million beneficiaries by 31 August 2026. Other education measures included expanding Sekolah Rakyat and Sekolah Unggul Garuda, renovating schools and madrasahs, and digitalising learning.

In healthcare, Suahasil said free health checks had reached 70.3 million residents in 2025 and 99.1 million by September 2026. Budget support also covered renovations at 10,000 community health centres, as well as construction and equipment provision for regional public hospitals. He said priority programmes would remain a focus as Prabowo’s administration entered its third year.