Indonesian Finance Minister Purbaya Yudhi Sadewa has indicated that the Indonesian Government will continue its budget efficiency policy in the 2027 fiscal year as part of efforts to improve the quality and effectiveness of state spending.
Purbaya was quoted by local media as saying on June 9 that the country remains committed to improving the quality of state expenditure through efficiency measures and budget refocusing so that allocations become more productive, better targeted, and capable of delivering tangible benefits to the economy and society.
Under the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF), the government targets state expenditure in the range of 13.62% to 14.80% of gross domestic product (GDP).
In line with this objective, the Indonesian Government will continue to strengthen ministry and agency spending in the regions through programme coordination, particularly for initiatives whose beneficiaries are located outside the capital, including the Free Nutritious Meals programme, the development of Red and White village and urban cooperatives, Sekolah Rakyat (People's Schools), and free health screening programmes.
Earlier, Indonesian President Prabowo Subianto presented the country’s macroeconomic framework and fiscal policy direction for the 2027 budget to parliament. The country is targeting economic growth of 5.8 - 6.5%, inflation of 1.5 - 3.5% and a 10-year government bond yield of 6.5 - 7.3%.
