Jakarta – The House of Representatives passed President Prabowo Subianto's budget bill for 2027 into law on Tuesday, with spending projected at Rp 4.1 quadrillion (US$228 billion) as the administration aims to lift the pace of economic growth to 6 percent.

Spending and revenue next year were approved at Rp 4.1 quadrillion and 3.4 quadrillion, respectively, representing increases of about 4 percent and 7 percent from the latest estimates for this year's budget.

The higher spending reflects increased allocations to ministries and agencies, the House's budget committee chair has said. The revenue target was raised by the same amount to maintain the fiscal deficit at 2.4 percent of GDP.

Headline inflation for 2027 was projected at 2.5 percent, which is within the central bank's target range, and the rupiah is assumed to average 17,500 per US dollar.

The budget bill was approved against a backdrop of investors' concerns about fiscal discipline and questions about the central bank's independence, which intensified after the surprise resignation of Governor Perry Warjiyo in July.

Prabowo's flagship free meals program received 240 trillion rupiah for next year, an increase of about 5 percent from this year's trimmed allocation. The scheme has been hit by a corruption investigation and numerous cases of mass food poisoning.

Source: https://www.thejakartapost.com/business/2026/09/29/house-passes-2027-state-budget-bill-into-la