On 29 September parliament passed the 2027 state budget: IDR 4,106 trillion in spending, IDR 3,435 trillion in revenue and a deficit of 2.4% of GDP. Two years into its term, the Prabowo government is aiming for 8% growth by 2029 on the back of free nutritious meals (MBG), village cooperatives, food self-sufficiency and the Danantara sovereign wealth fund.
What a Korean company can do now
Government · leader
President Prabowo Subianto (Head of State and Government)
Key national agenda
- 8% growth by 2029 (2027 growth outlook 5.8-6.5%)
- Expanding free nutritious meals (MBG) and making them more transparent
- Food self-sufficiency (record rice reserves) and better livelihoods for farmers and fishers
- Village cooperatives (Koperasi Desa Merah Putih) and basic infrastructure such as housing, schools and bridges
- Strengthening the Danantara sovereign wealth fund and introducing a single window for exports
Government programmes
2027 state budget (APBN)Spending IDR 4,106 trillion
Revenue IDR 3,435tn (tax IDR 2,593tn); transfers to regions IDR 735tn; deficit IDR 671tn (2.4% of GDP)
Village cooperatives (Koperasi Desa Merah Putih)
Free nutritious meals (MBG)
Run by the National Nutrition Agency, with oversight tightened through fraud investigations and dismissals
Basic infrastructure (housing, schools, bridges, regional hospitals)
About 440,000 homes renovated, nearly 90,000 schools repaired and about 5,000 bridges completed; 22 of 66 funded regional hospitals completed
People's Schools (Sekolah Rakyat) expansion
Construction extended to 100 sites in 32 provinces
Flood Management in North Java Project (ADB loan)About USD 311 million
Implemented by the DG of Water Resources at the Ministry of Public Works and Housing; governance and procurement consultants have been recruited
Business opportunities
AI dashboard for MBG food procurement, delivery tracking and fraud detection
🔒 Why-now and buyers — analysis member ₩19,800/mo
Accounting and inventory SaaS plus operations training for village cooperatives
🔒 Why-now and buyers — analysis member ₩19,800/mo
Open this week
Indonesia entry consulting for Korean consumer and halal products (certification, distribution)
Mandatory halal certification is being rolled out while demand for Korean consumer goods grows.
Korean food and cosmetics SMEs entering Indonesia
Consulting to digitalise budget and project performance management for regional governments
🔒 Why-now and buyers — analysis member ₩19,800/mo
Free members get a human-reviewed summary by email for up to 3 countries a month (sent within 24h). BUILD members get them all.
Korean support schemes
- 2026 Jakarta K-Premium Consumer Goods Fair · KITA and COEX — Brought about 200 Korean consumer-goods firms together with local buyers for export meetings in Jakarta in Sep 2026.
- EDCF 2026-2028 mid-term plan · Ministry of Economy and Finance / Korea Eximbank — About KRW 3tn a year; brings AI into EDCF infrastructure projects and expands support to countries rich in critical minerals.
- KOICA Indonesia Office · KOICA — Indonesia is a KOICA priority partner country, and the local office runs development cooperation projects.
- Export Voucher program · MSS / MOTIE — Covers costs for halal certification, market research and localisation consulting.
Official notices
Cabinet Secretariat of the Republic of Indonesia (setkab.go.id)
- 2026-10-29 Government guarantees food supply and stable prices for Christmas and New Year
- 2026-10-27 President orders studies on curbing forest fires, expanding energy development and speeding up vaccine development
- 2026-10-26 Housing support expanded, with more help for small businesses
- 2026-10-23 Two-year achievements outlined (10,000 cooperatives, about 5,000 bridges, etc.)
Disaster · conflict · epidemic
Stable 2026-11-07
Flooding reported (GDACS, 4 Nov) (single source)
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