JAKARTA, Aug 14 (Bernama) -- Indonesia has proposed a state expenditure of Rp4.09 quadrillion (Rp1 million= RM228.40) for 2027 to support eight national priority programmes, as the government targets to achieve a stronger economic growth of six per cent next year.
President Prabowo Subianto said the proposed expenditure is higher than the Rp3.84 quadrillion in the 2026 State Budget, while state revenue for 2027 is projected at Rp3.42 quadrillion, up from Rp3.15 quadrillion this year.
Under the proposed budget, he said economic growth is targeted at six per cent for 2027, higher than the 5.4 per cent target under the 2026 State Budget, while inflation is expected to be maintained at 2.5 per cent.
On the fiscal position, he said financing is proposed at Rp671.2 trillion, with the fiscal deficit projected at 2.40 per cent of gross domestic product (GDP) -- lower than the Rp689.1 trillion in financing and 2.68 per cent deficit under the 2026 State Budget.
“We will strive to bring this down further. We understand that the ideal deficit is as small as possible, and indeed our aspiration is to have a balanced budget,” Prabowo said when presenting the 2027 State Budget Bill and Financial Note on Friday.
He said the 2027 Draft State Budget would focus on eight national priority programmes, including food sovereignty, energy and water self-sufficiency, education, health, as well as downstreaming and industrialisation.
The other priorities are infrastructure, housing and disaster resilience; strengthening the people’s economy and village development; and poverty reduction.
“The eight priorities are supported by strengthening defence and security, law enforcement, governance, accelerating digitalisation and economic diplomacy,” the president said.
With stronger growth and an effective State Budget, Prabowo said the poverty rate is targeted at 6.0-6.5 per cent next year, compared with the 2026 target of 6.5-7.5 per cent.
He said the open unemployment rate is targeted at 4.30-4.87 per cent, down from 4.44-4.96 per cent in 2026, while the Gini ratio is targeted to improve to between 0.362 and 0.367 and the Human Capital Index to increase to 0.575.
-- BERNAMA