President Announces Draft Fiscal Policy for 2027 at The House Plenary Session

RRI.CO.ID, Jakarta - The Indonesian government has begun formulating its fiscal policy direction for 2027, with a focus on maintaining the health of the national budget. President Prabowo Subianto has set a target to keep the 2027 State Budget (APBN) deficit under control while sustaining development and economic growth.

Presenting the Macroeconomic Policy and Key Fiscal Policy Guidelines (KEM-PPKF) for the 2027 Draft State Budget (RAPBN) during a plenary session of the House of Representatives (DPR) at the Parliament Complex in Jakarta, President Prabowo said the government had set the deficit at 1.80 percent to 2.40 percent of gross domestic product (GDP).

“We will continue to strive to suppress and minimize this deficit,” President Prabowo said on Wednesday, May 20, 2026, as quoted by Antara.

In addition to managing the deficit, the government aims to increase state revenue. In the initial draft of the 2027 State Budget, revenue is projected at 11.82 percent to 12.40 percent of GDP, while spending is planned at 13.62 percent to 14.80 percent of GDP.

President Prabowo emphasized that the State Budget is not merely a financial document but also a tool for achieving national development goals.

“The APBN is an instrument to protect the people, strengthen the foundations of the national economy, and ensure every citizen can live more prosperously. With that awareness, we have formulated the State Budget as a collective commitment to realize the aspirations mandated in the 1945 Constitution,” he said.

The plenary session was attended by 451 DPR members, Vice President Gibran Rakabuming Raka, and ministers of the Red and White Cabinet, including Coordinating Minister for Economic Affairs Airlangga Hartarto, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono, and Coordinating Minister for Political and Security Affairs Djamari Chaniago. Finance Minister Purbaya Yudhi Sadewa, Foreign Minister Sugiono, State Secretary Prasetyo Hadi, Energy and Mineral Resources Minister Bahlil Lahadalia, and Agriculture Minister Andi Amran Sulaiman were also present.

Bank Indonesia Governor Perry Warjiyo, Financial Services Authority (OJK) Chair Friderica Widyasari Dewi, and Deposit Insurance Corporation (LPS) Chair Anggito Abimanyu also attended. ***