Prabowo Sets 2.4 Percent Deficit Ceiling for 2027 Draft Budget

May 20, 2026 | 12:36 pm

TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto targets a deficit in the Draft State Revenue and Expenditure Budget (RAPBN) for 2027 of less than 3 percent of GDP, ranging from 1.80 to 2.40 percent.In front of more than 400 members of the Indonesian House of Representatives (DPR) and several state officials, President Prabowo emphasized that his administration will continue to strive to reduce the state budget deficit."In terms of financing, our deficit in 2027, the state budget deficit, we will maintain in the range of 1.80 to a maximum of 2.40 (percent of) GDP and we will continue to strive to reduce and narrow this deficit," said Prabowo while presenting the macroeconomic and fiscal policy framework (KEM-PPKF) for the 2027 RAPBN in the DPR Plenary Session at the Nusantara Building, Parliament Complex, Jakarta, Wednesday, May 20, 2026, as reported by Antara.On the same occasion, Prabowo also targets state revenue in the 2027 RAPBN to reach around 11.82 percent to 12.40 percent of GDP. "To support various priority programs, state expenditure is planned to be in the range of 13.62 to 14.80 percent of our GDP," the President said.Prabowo directly conveyed the macroeconomic and fiscal policy framework (KEM-PPKF) for the 2027 RAPBN at the DPR 19th Plenary Session for the 2025-2026 Session.The DPR Plenary Session today discussed three main agendas, namely the presentation of the macroeconomic and fiscal policy framework of the 2027 State Budget by the government; the report of the DPR Legislative Body on the evaluation of the second amendment of the 2026 Priority Bill National Legislation Program (Prolegnas) followed by decision-making; and the opinions of the factions on the amendment proposal of the DPR Commission III on the amendment of Law Number 2 of 2002 concerning the Indonesian National Police, followed by decision-making to become a bill proposed by the DPR.Read: Prabowo Explains Why He Delivered Economic Speech in ParliamentClick here to get the latest news updates from Tempo on Google News