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.

Indonesia has set an ambitious growth target, but economists aren't sure it can get there while keeping the deficit in check.

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…