Indonesia’s 2027 State Spending to Top $230 Billion
Jakarta. Indonesia plans to spend Rp 4,097 trillion ($229.90 billion) in 2027, its largest state budget expenditure on record, with the government prioritizing human capital development, infrastructure, and public services.
“This is the first time in the history of the Republic of Indonesia that state expenditure has exceeded Rp 4,000 trillion. This is not just a matter of large spending, but also a great responsibility,” Finance Minister Suahasil Nazara said at the Antara Business Forum in Jakarta on Wednesday.
Suahasil said the spending would prioritize human capital development through programs to boost productivity, improve health and education, and strengthen social protection. The government would also invest in supporting services, including infrastructure development and stronger connectivity, to improve human capital quality.
State spending would be carried out in coordination with the Indonesia Investment Management Agency Danantara and other financial sector authorities, he added.
The government has set state expenditure in the 2027 Draft State Budget (RAPBN) at Rp 4,097.2 trillion, up 3.9% from the 2026 outlook. The allocation comprises Rp 3,362.2 trillion in central government spending and Rp 735 trillion in transfers to regional governments.
Central government spending will focus on improving expenditure quality while maintaining public service performance and supporting household purchasing power to ensure sustainable development.
Meanwhile, regional transfers are expected to improve the quality of local government spending and support more equitable and sustainable development.
On the revenue side, the government projects state revenue to reach Rp 3,426 trillion in 2027, a 6.8% increase from the 2026 outlook, equivalent to 12.23% of gross domestic product (GDP).
The projected revenue consists of Rp 2,908 trillion in tax revenue, Rp 517.4 trillion in non-tax state revenue (PNBP) and Rp 0.7 trillion in grants.
Tax revenue comprises Rp 2,591.4 trillion in tax receipts and Rp 316.6 trillion in customs and excise revenue.
Based on the projected revenue and expenditure, the government has set the 2027 budget deficit at Rp 671.2 trillion, or 2.40% of GDP.
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