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President Prabowo Subianto looks on as he arrives on Aug. 14 at the Senayan legislative complex in Central Jakarata for the People's Consultative Assembly (MPR) plenary meeting, in which he delivered the State of the Nation address and the 2027 state budget proposal. (Reuters/Stringer) (Reuters/Stringer)
President Prabowo Subianto has unveiled the government’s proposed state budget for the 2027 fiscal year, outlining another substantial expansion in government spending ahead of Indonesia’s 81st Independence Day. Government expenditure is set to rise to Rp 4,097.2 trillion (US$230.4 billion), from Rp 3,842.7 trillion in this year’s state budget, while state revenue is targeted at Rp 3,426 trillion, compared with Rp 3,153.6 trillion this year. The government is also targeting 6 percent economic growth in 2027, reinforcing Prabowo’s longstanding commitment to using government-led initiatives to accelerate growth.The proposed budget suggests that Prabowo is staying on the same policy trajectory despite the rocky year his administration has faced. Several of his flagship initiatives have encountered significant roadblocks, while others have had to be scaled back from their original ambitions. The free nutritious meal program, for instance, has faced challenges in its rollout, with its 2026 budget subsequently cut from the Rp 335 trillion initially allocated to Rp 268 trillion and then again to Rp 229 trillion. Following Prabowo’s speech, Finance Minister Purbaya Yudhi Sadewa gave a rough estimate that around Rp 240 trillion would be allocated to the program under the 2027 budget, still well below its original 2026 allocation.
