JAKARTA, Sept 29 — Indonesia's House of Representatives (DPR) has approved a 4.106 quadrillion rupiah (RM929.8 billion) state budget for 2027, with major allocations for education, social protection, and food security as the government seeks to accelerate national development while maintaining fiscal discipline.
Finance Minister Suahasil Nazara said education received the highest allocation among the priority areas, at 824 trillion rupiah (RM186.8 billion), covering student assistance, university scholarships, school and madrasah renovation, and the development of Sekolah Rakyat and Sekolah Unggul Garuda.
The government has allocated 539.7 trillion rupiah (RM122.4 billion) for social protection to support low-income, poor and vulnerable groups, and accelerate poverty reduction, while 195.3 trillion rupiah (RM44.29 billion) is allocated for food security to strengthen food self-sufficiency and improve the welfare of farmers and fishermen.
“The 2027 State Budget is designed to respond to global uncertainty while accelerating national development priorities without compromising fiscal sustainability. The principle is clear: fiscal policy must remain prudent but not passive.
“It must be present to maintain growth momentum and protect the public while preserving its credibility,” he said in the government's final remarks on the budget at the Parliament Complex in Jakarta.
President Prabowo Subianto first tabled the 2027 State Budget Bill and Financial Note before the DPR on August 14, followed by deliberations with lawmakers that culminated in final approval today.
Suahasil added that the budget focused on eight national priority clusters: food sovereignty; energy and water independence; education; health; downstreaming and industrialisation; infrastructure, housing and disaster resilience; the people's economy and village development; and poverty reduction.
To support these priorities, the government set state revenue at 3.43 quadrillion rupiah (RM778.9 billion) and the fiscal deficit at 2.4 per cent of gross domestic product (GDP), aiming to maintain fiscal sustainability.
The budget assumes economic growth of six per cent and inflation of 2.5 per cent in 2027, with the exchange rate projected at around 17,500 rupiah against the United States dollar.
He said the government also set the Indonesian crude oil price assumption at US$75 per barrel, with oil lifting targeted at 612,500 barrels per day and gas lifting at 954,000 barrels of oil equivalent per day.
The budget was formulated amid high global uncertainty, including geopolitical tensions and trade fragmentation that could disrupt supply chains, increase price volatility, and add to inflationary pressures.
Suahasil noted that the government will continue to maintain a healthy, credible and sustainable state budget through revenue optimisation, improved spending quality, and innovative but measured financing.
