Indonesia's 2027 Draft Budget Sees Most Agencies Facing Funding Cuts, Defense Ministry Increases Budget

Indonesia's draft budget for 2027 forecasts complex global economic dynamics and high uncertainty, according to the "Buku II Nota Keuangan Beserta RAPBN 2027." This outlook accompanies planned budget allocations for ministries and agencies, most of which will see reduced funding compared to 2026.

The National Nutrition Agency (BGN) will still command the largest budget, projected at Rp240.2 trillion, a decrease from Rp268 trillion in 2026. Similarly, the National Police (Polri) faces a budget cut of approximately 5%, dropping from Rp146.05 trillion to Rp139.1 trillion.

In contrast, the Ministry of Defense (Kemenhan) is set for a modest increase, rising from Rp187.1 trillion to Rp189.01 trillion. The Ministry of Education, Culture, Research, and Technology (Kemendikdasmen) also sees a rise, with its budget climbing about 9% from Rp56.6 trillion to Rp61.1 trillion. The Ministry of Education, Culture, Science, and Technology (Kemendiktisaintek) will also experience a 6.5% increase, from Rp61.8 trillion to Rp65.1 trillion.