Indonesia’s budget committee has approved IDR 4,106.3 trillion in spending for 2027, with higher revenue targets, lower energy subsidies, and a proposed excise tax on sugary drinks.
Indonesia’s budget committee has given final approval to the government’s 2027 budget plan. The committee, led by chair Said Abdullah, signed off on total spending of IDR 4,106.3 trillion on 24 September 2026.
The approved amounts each run IDR 9.1 trillion higher than the initial proposal put forward by President Prabowo Subianto in August. The committee raised revenues by the same sum to hold the fiscal deficit steady.
The budget makes several shifts from the initial proposal. Energy subsidies have been cut by IDR 11 trillion to IDR 261.5 trillion, equal to just over 6% of total spending. Finance Minister Suahasil Nazara attributed the reduction to improvements in how fuel reaches the population.
The government expects higher revenues from commodity sectors. The crude oil output projection was raised slightly to help explain the improved revenue target. Finance Minister Nazara, who took office last week after serving as deputy minister since 2019, has outlined plans to boost commodity income through a new state export firm and a planned commodity exchange for price-setting.
The budget framework includes a draft bill proposing an excise tax on sugary drinks. The committee’s approval now moves toward a broader parliamentary vote scheduled for 29 September 2026.
