Indonesia's 2027 budget deficit to remain below 3% of GDP

Indonesia's Finance Minister Purbaya Yudhi Sadewa has assured that the state budget deficit for 2027 will be maintained below the 3% threshold stipulated by law. The proposed 2027 State Budget (RAPBN 2027) outlines a deficit of Rp 671.2 trillion, equivalent to 2.4% of the Gross Domestic Product (GDP).

According to the budget plan, state revenues are projected to reach Rp 3,426 trillion, while total state expenditures are estimated at Rp 4,097.2 trillion. This leaves a gap of approximately Rp 671.2 trillion, which will be financed through various means. Central government spending is allocated Rp 3,362.2 trillion, with an additional Rp 735 trillion designated for transfers to regions.

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If we need efficiency, we will be efficient. If circumstances force us. But I don't think so. We will continue to keep the deficit below 3% as per the President's directive.

Compared to the 2026 outlook, total state spending is set to increase from around Rp 3,950.5 trillion to Rp 4,097.2 trillion in 2027. Despite this rise in expenditure, the government aims to reduce the deficit ratio from an estimated 2.85% in 2026 to 2.4% of GDP in 2027.

Minister Sadewa emphasized that the government will continuously monitor the national budget's condition on a month-to-month basis. "If we need efficiency, we will be efficient. If circumstances force us. But I don't think so. We will continue to keep the deficit below 3% as per the President's directive," he stated. The government also anticipates room for revenue improvement alongside economic growth, targeting a 6% economic expansion for the year. Furthermore, the primary balance is projected to improve significantly, narrowing from a deficit of Rp 152.1 trillion in the 2026 outlook to Rp 20.9 trillion in 2027, indicating a closer balance between revenues and expenditures before accounting for debt interest payments.

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If there's anything, we always monitor our state budget condition from month to month.