Finance Minister Purbaya Yudhi Sadewa has recognized eight key programs that will guide fiscal policy in the 2027 State Budget (APBN).
Purbaya stated during a plenary session of the House of Representatives (DPR RI) in Jakarta that fiscal policy will center on backing eight clusters of National Priority Work Programs along with one enabling cluster that includes 60 work programs.
The eight priority clusters encompass food sovereignty, self-sufficiency in energy and water, education, healthcare, downstream industries and industrialization, infrastructure and housing with disaster resilience, enhancing the people's economy and rural development, and reducing poverty.
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The supporting cluster comprises enhancing defense and security, law enforcement, governance, digital transformation, and economic diplomacy. To back these priorities, the government will enhance state revenue via tax reform and digitalization, broaden the revenue base, and improve governance of non-tax state revenue (PNBP).
In terms of spending, the government will persist in enhancing the quality of expenditures to ensure they are more efficient, productive, targeted, and effective, including by bolstering social protection initiatives founded on the National Socioeconomic Single Data system (DTSEN). The government will also handle funding wisely and creatively to ensure fiscal resilience.
Different creative funding strategies will be established through partnerships with the Danantara Investment Management Agency (BPI Danantara), Special Mission Vehicles (SMVs), Public Service Agencies (BLUs), and sovereign wealth funds to facilitate Indonesia's economic transformation.
Moreover, the Finance Minister established the deficit target for the 2027 State Budget (APBN) at between 1.8 percent and 2.4 percent of gross domestic product (GDP). Sadewa stated that the fiscal macro stance for 2027 is crafted collaboratively, specifically, and quantifiably, featuring a deficit ranging from 1.8 percent to 2.4 percent of GDP. He claims that the target for the deficit range is backed by state revenue of 11.82 percent to 12.40 percent of GDP and state spending of 13.62 percent to
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Sadewa stated that the fiscal macro posture for 2027 is crafted collaboratively, with specific goals and measurable outcomes, featuring a deficit ranging from 1.8 percent to 2.4 percent of GDP. He states that the target for the deficit range is backed by state revenue of 11.82 percent to 12.40 percent of GDP and state spending of 13.62 percent to 14.80 percent of GDP.
To meet the state revenue goal, the minister stated that the government is enhancing state income by both broadening the tax base and better managing natural resources. Revenue enhancement will be achieved by reinforcing a tax system that adjusts to alterations in the economic framework.
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Utilizing technology and big data analytics will enhance taxpayer compliance by improving oversight, expanding the tax base, and sustainably maximizing state revenue potential. Concurrently, the government will persist in offering fiscal incentives in a focused, selective, and quantifiable way to strategic sectors that create significant added value for the economy.