2 weeks ago
Indonesia’s Prabowo to present high-stakes budget plans as support slips
Indonesia is a big country in Asia, and Prabowo Subianto is its president.
When he won the election, he made big promises like helping the economy grow faster and giving free meals to millions of children.
Now, he has to show the country his plan for spending money next year.
This plan is called the 2027 budget.
Some people, called investors, give money to countries to help them grow.
They are worried because Indonesia has spent a lot of money and there have been surprises.
The president’s popularity has gone down by a lot in just eight months.
He also created a new company to control important things the country sells, but nobody is sure what that company will do.
On Friday, Prabowo will give a speech and share his budget plan.
Everyone will be listening carefully to see if he can fix the problems.
President Prabowo Subianto will present Indonesia’s 2027 budget proposals on Friday, preceded by an address marking Independence Day.
His approval rating tumbled 30 percentage points in eight months to 51%, a poll last month showed, largely due to deteriorating economic conditions and dissatisfaction with law enforcement.
Economists call the budget one of the most important credibility checkpoints for global investors in recent years, with the fiscal deficit around 2.8% of GDP in 2025.
The deficit is on track to approach Indonesia’s 3% constitutional ceiling again this year.
Investors await clarity on the role of state-run entity Danantara Sumberdaya Indonesia, announced in May to centralise exports of all critical natural resources.
- Who
- Indonesian President Prabowo Subianto, who took office in October 2024; analysts such as Irman Faiz of Bank Danamon and researchers at the Center for Strategic and International Studies are also watching closely.
- What
- Presentation of the 2027 budget proposals and a morning address marking Independence Day, amid falling approval ratings and investor skepticism over plans to control commodities exports and other ambitious policies.
- Where
- Indonesia, with reporting datelined Jakarta.
- When
- Friday, August 14, 2026.
- Why
- To address deteriorating economic conditions — a depreciating rupiah, a poorly performing stock market, and concerns over overspending and central bank independence — and to reassure global investors whose tolerance for policy uncertainty has grown thinner.
Administration perspective
Investor and analyst perspective
Role of Danantara Sumberdaya Indonesia
Administration perspective
The original announcement said exports of all critical natural resources would be centralised under the new state-run entity.
Investor and analyst perspective
Many in the administration now say the entity will only have a supervisory role, and investors hope the president will clarify its precise role.
Fiscal and policy predictability
Administration perspective
The government is pushing ambitious priority programmes such as free meals for children and commodity export controls despite fiscal constraints.
Investor and analyst perspective
Markets have had to digest policy surprises for two consecutive years, and their tolerance for policy uncertainty has grown thinner as the deficit nears the 3% constitutional ceiling.
Key facts
- President
- Prabowo Subianto
- Event
- 2027 budget presentation and Independence Day address
- Date
- Friday, August 14, 2026
- Location
- Jakarta, Indonesia
- Approval rating
- 51%, down 30 percentage points in eight months
- Fiscal deficit (2025)
- Around 2.8% of GDP, approaching the 3% constitutional ceiling
- Took office
- October 2024
- New state entity
- Danantara Sumberdaya Indonesia
Quotes
Irman Faiz
Economist at Bank Danamon
“"The 2027 budget is clearly one of the most important credibility checkpoints for global investors in recent years, especially after two consecutive years where the market has had to digest various policy surprises time and again."”
theprint.in
Sources
Related news
Indonesia's Prabowo says state export firm to monitor key commodities
Indonesia's New Central Bank Chief Destry Faces Test From Government
West Bengal Budget Speech Figures Don't Always Mean Allocated Funds
India’s FY28 Budget Process to Emphasize Realistic Estimates, Discipline
Bolivia Lawmakers Remove Economy Minister, Setback for President Paz
Union Budget 2027-28 Preparations Begin as Circular Issued
Modi Receives Uzbekistan’s Highest Honour During Official Visit
India Expands Indo-Pacific Influence Through Ports and Partnerships
Jakarta Police Detain More Than 300 After Protest Unrest
India Faces Diplomatic Test at High-Stakes BRICS Summit
China, Indonesia Ministers Prepare Security and Economic Talks
