The government and the House of Representatives (DPR) have set the 2027 tax revenue target at IDR 2,911.95 trillion, up IDR 4 trillion from the previous target of IDR 2,907.95 trillion outlined in the 2027 Draft State Budget (RAPBN). The higher target is part of an adjustment to state revenue to accommodate increased spending without relying on additional debt financing.
Tax revenue is one of the main components of the 2027 state revenue outlook. Overall, state revenue is targeted at IDR 3,435.10 trillion, an increase of IDR 9.07 trillion from the previous target of IDR 3,426.03 trillion.
In addition to tax revenue, the government has set a target of IDR 522.48 trillion for non-tax state revenue (PNBP), up IDR 5.07 trillion from the previous target of IDR 517.41 trillion.
Chairman of the DPR Budget Committee (Banggar) Said Abdullah said the higher tax revenue target would be supported by improvements in governance, stronger law enforcement, greater use of technology, and increased revenue in line with economic growth.
The measures will also include broadening the tax base. However, tax base expansion needs to be carried out in a measured manner to avoid placing additional pressure on economic activity. According to Said, strengthening state revenue through tax and non-tax sources is necessary to offset the increase in government spending.
“As a result, we will not have to finance the increase in government spending through additional debt,” Said Abdullah said in Jakarta on Tuesday (Sept. 29, 2026).
Alongside the higher revenue target, the government and the DPR agreed to raise the 2027 state spending allocation by IDR 9.07 trillion to IDR 4,106.26 trillion from IDR 4,097.19 trillion previously.
The spending allocation comprises IDR 3,371.26 trillion in central government expenditure and IDR 735 trillion in transfers to regions (TKD). Said said the additional spending would be directed toward various national priority programs.
Despite the increase in spending, the government and the DPR maintained the 2027 budget deficit target at 2.4% of gross domestic product (GDP). Adjusting the revenue target is one of the measures to keep the deficit at the agreed level.
The government and the DPR Budget Committee also agreed on several key macroeconomic assumptions underlying the 2027 state budget. Economic growth is projected at 6.0%, with inflation at 2.5%. Meanwhile, the assumed interest rate for 10-year government securities (SBN) is set at 6.9%.
The rupiah exchange rate assumption has been set at IDR 17,500 per US dollar. For the oil and gas sector, the Indonesian Crude Price (ICP) is assumed at US$75 per barrel. Oil lifting is targeted at 612,500 barrels per day, while gas lifting is set at 954,000 barrels of oil equivalent per day.
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