2027 Education Budget Reaches IDR 820.9 Trillion, Purbaya Reveals Teacher Salary Increase Not Planned

RAPBN 2027 (Aris Nurjani/VOI)

JAKARTA - Finance Minister Purbaya Yudhi Sadewa confirmed that there was no decision on the increase in teachers' salaries in 2027, even though the government increased the education budget allocation in the 2027 State Budget to Rp. 820.9 trillion.

Purbaya said that the adjustment of teachers' salaries had not been included in the government's initial budget planning. However, this possibility is still open if the state's financial condition allows it and the policy needs are considered urgent.

"Not yet, not yet, not planned (teacher salary increase). But that doesn't mean it's not possible," he told the media after a press conference, quoted Sunday, August 16.

According to him, the government can still make changes to the allocation of the budget during the current year, especially if state revenues are better than expected.

"It could be that as time goes on, if the government has more money and it is needed, we can add it too. But now it has not been planned," he said.

In the 2027 State Budget, the education budget was set at Rp820.9 trillion or increased by around 13.9 percent compared to the education ceiling in the 2026 State Budget of Rp720.8 trillion.

The increase in the budget will be directed to various education and human resource development (HRD) programs, one of which is through the Indonesia Smart Program (PIP) which is targeted to reach 22.1 million students as well as the Indonesian Smart Student Card (KIP Kuliah) for 1.1 million students.

In addition to educational assistance, the government has also prepared a budget to improve the quality and facilities of education in various regions.

The program includes the construction of the Garuda Excellent School (SUG) and the People's School as well as accelerating the revitalization of schools and madrasahs that have been damaged.

The education budget will also be used to support the improvement of learning quality and the fulfillment of the basic needs of learners, one of which is through the Free Nutritious Meal (MBG) program which has an allocation of around Rp. 240 trillion.

The government also plans to gradually fulfill the right to basic education by considering the needs and conditions of each region.

Previously, President Prabowo Subianto asked ministries and agencies to avoid wasting the budget and should be directed to programs that provide direct benefits to the community, including improving the welfare of teachers.

In the 2026 MPR RI Annual Session and Joint Session of the DPR RI and DPD RI, Prabowo invited all elements of government, parliament, business world, universities, workers, farmers, fishermen, health workers, teachers, and the community to jointly monitor the government's agenda.

"There should be no projects that are only big on the budget but small in real benefits for the people. There should be no incentives without new jobs, no investment without technology transfer. Every rupiah must have a purpose, every policy must have a measure, every official must have accountability," he said.

Prabowo emphasized that the government must be oriented towards serving and protecting the community, including facing the risk of poverty, physical threats, layoffs, and limited access to health services.

He also asked all levels of government to increase efficiency and eradicate corruption, fraud, markup, and inflation of the budget.

One of the savings highlighted by Prabowo is the budget for ceremonial activities. "I am happy that there is no longer any budget for the ministry's anniversary. The ministry's anniversary is enough to cut the tumpeng in the office and I hope that in all provinces and all districts/cities there is no budget to celebrate the anniversary massively," he said.

According to Prabowo, the budget that was previously used for ceremonial activities should be diverted to more productive needs, especially the improvement of education and health facilities and the improvement of teachers' welfare.

"It's better to improve schools, improve hospitals, increase teachers' salaries than ceremonies. But if the independence day ceremony is centralized, it is mandatory," he said.

In the 2027 State Budget, the government plans to spend Rp4,097.2 trillion. Meanwhile, state revenues are projected to reach Rp3,426 trillion, an increase from Rp3,153.6 trillion in the 2026 State Budget.

The government also plans to finance Rp671.2 trillion with a budget deficit targeted at 2.40 percent of Gross Domestic Product (GDP).