Indonesia keeps 2027 budget deficit secret

Indonesia's government is keeping the projected deficit for the 2027 State Budget under wraps, with President Prabowo Subianto set to reveal the figures during his address to the House of Representatives on August 14.

Officials are still finalizing the budget's framework, including the deficit target, which will guide fiscal policy next year. Rofyanto Kurniawan, Director of State Budget Preparation at the Directorate General of Budget, stated that the details would be presented by the President. The government is preparing the 2027 budget amidst high global economic uncertainty, aiming to balance state spending needs with priority programs and fiscal sustainability.

Despite external risks, the government remains optimistic about the 2027 economic outlook, supported by strengthening investment and household consumption trends observed in 2026. Indonesia's economy grew 5.29% year-on-year in the second quarter of 2026, up from 5.12% in the same period last year. This growth was fueled by increased investment, sustained household spending, and government policies to support purchasing power.

However, the government acknowledges the need to anticipate external risks, including global economic slowdowns, geopolitical uncertainties, and international financial market dynamics. These factors are being considered in the formulation of macroeconomic assumptions and the 2027 fiscal posture. Consequently, the 2027 budget will continue to serve as a fiscal instrument to maintain economic stability, support growth, protect public purchasing power, and bolster businesses and government priority programs.