Analysis: 2027 budget sticks to growth agenda despite headwinds - Academia

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.