Indonesia to maintain fiscal stability while funding key 2027 programs

..the national economy has demonstrated strong resilience through 2026,

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has pledged to maintain Indonesia’s fiscal stability heading into 2027, while ensuring adequate budgetary support for the implementation of various National Priority programs.

Speaking at a working meeting with Commission XI of the House of Representatives (DPR) on Monday, Purbaya emphasized that the State Budget (APBN) will remain the country's primary instrument to cushion economic shocks, improve public welfare and support an inclusive economic transformation.

"The Ministry of Finance continues to maintain sound fiscal performance to encourage higher economic growth through strategic steps to optimize revenue, quality spending and innovative financing," Purbaya told lawmakers.

To drive an inclusive and sustainable economic transformation, the ministry has mapped out structural frameworks covering fiscal policy reform, state revenue optimization and prudent asset and risk management.

The 2027 State Budget (APBN) will be directed toward several key national priorities, including the establishment of People's Schools, the eradication of smuggling, the development of Merah Putih Village Cooperatives and the Free Nutritious Meal Program.

The Budget will also support the construction of three million homes, healthcare service upgrades and the implementation of the mandatory B50 biodiesel program.

Purbaya reassured lawmakers that the national economy has demonstrated strong resilience through 2026, noting that economic growth in the first quarter of 2026 reached 5.61 percent year-on-year (yoy).

Other stabilizing factors include well-controlled inflation, adequate foreign exchange reserves and a trade balance surplus that has continued for 72 consecutive months.

Regarding the current fiscal position, Purbaya reported that realized state revenue had reached Rp1,185 trillion (approximately US$66.96 billion), representing a 19.1 percent yoy growth. Meanwhile, state expenditure reached Rp1.365 quadrillion (approximately US$77.15 billion), up 34.4 percent compared to the same period last year.

Financing realization stood at Rp379.4 trillion (approximately US$21.44 billion), while both the fiscal deficit and public debt remained within manageable and prudent levels.

He concluded by emphasizing that the government will continue to utilize the APBN to safeguard public purchasing power and sustain economic growth while maintaining a strong commitment to long-term fiscal sustainability.

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Translator: Imamatul Silfia, Yashinta Difa

Editor: M Razi Rahman

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