Indonesia’s 2027 State Budget Targets Higher Growth, Faster Welfare Gains

RRI.CO.ID, Jakarta: Finance Minister Purbaya Yudhi Sadewa said the proposed 2027 State Budget (RAPBN) is designed to drive stronger economic growth and accelerate improvements in public welfare while maintaining fiscal health. He made the statement during a plenary session of the House of Representatives (DPR) in Jakarta on Thursday, August 27, 2026, which discussed the government’s response to lawmakers’ views on the 2027 State Budget Bill and its Financial Note.

“The State Budget has a dual function. First, as a shock absorber to maintain national economic stability and protect people’s purchasing power. Second, as a countercyclical instrument to stimulate the domestic economy while supporting national development priorities,” the Finance Minister said in an official statement.

The 2027 proposed budget will focus on eight clusters of national priority programs and one supporting or enabling program, covering a total of 60 work programs. The priority areas include food sovereignty; energy and water self-sufficiency; education; healthcare; downstreaming and industrialization; infrastructure; housing and disaster resilience; the people’s economy and villages; and poverty reduction.

In line with these policy priorities, Purbaya expressed appreciation for the views and support of DPR factions to make state spending increasingly selective, focusing on programs that can strengthen national economic resilience and deliver optimal economic and social benefits to the public.

“We appreciate the support of all DPR factions for directing state spending more selectively toward programs that can strengthen national economic resilience and generate the greatest economic and social benefits for the people,” he said.

In education, the government will accelerate efforts to improve education quality through the development of Sekolah Rakyat, Sekolah Unggul Garuda, and integrated schools. The efforts will also include accelerating the revitalization of schools and madrasahs and improving learning quality, including through the Free Nutritious Meals program.

In the healthcare sector, the government is committed to expanding equitable access to healthcare services, particularly for people in disadvantaged areas and regions with limited access to basic services. Healthcare system transformation will continue through the optimization of National Health Insurance contribution assistance for beneficiaries (PBI), expanded health screening coverage, and hospital revitalization.

The government will also continue strengthening social protection programs to help people meet basic needs, maintain purchasing power, reduce poverty, and improve welfare.

Meanwhile, accelerated infrastructure development will focus on strengthening connectivity and supporting food and energy resilience. Development will also include facilities supporting downstream industries and infrastructure designed to stimulate economic growth, as well as the restoration of infrastructure in disaster-affected areas.

In the housing sector, state spending will support the provision of affordable housing, home renovations to improve sanitation, and the upgrading of settlements and surrounding environments.