Trade Ministry Seeks Additional Rp 1.86 Trillion Budget, Largest Portion for Traditional Markets

Trade Ministry Seeks Additional Rp 1.86 Trillion Budget, Largest Portion for Traditional Markets

JAKARTA, KOMPAS.com - The Ministry of Trade (Kemendag) has submitted a proposal for an additional budget of Rp 1.86 trillion for 2027 to bolster several strategic programs, ranging from revitalization of traditional markets, disaster-affected market recovery, export MSME development, to trade digitalization.

Trade Minister (Mendag) Budi Santoso stated that this additional funding is expected to support the achievement of trade goals and national economic growth.

“To optimize the implementation of strategic programs, the Ministry of Trade is proposing an Additional Budget Allocation of Rp 1.86 trillion,” Budi said during a meeting with Commission VI of the Indonesian House of Representatives at the Parliament Building, Senayan, Jakarta, Thursday (17/9/2026).

Front view of Way Halim Bandar Lampung Traditional Market, already certified SNI by the Ministry of Trade.

This proposal is detailed in the Ministry of Trade's Work Plan and Budget for Fiscal Year 2027.

From the total additional budget, the largest allocation of Rp 1.2 trillion will be dedicated to the construction and revitalization of 200 traditional market units.

This program is part of Kemendag’s support for poverty reduction efforts.

Next, Rp 344.13 billion is proposed for rehabilitation and reconstruction of 56 traditional markets in disaster-affected areas across Sumatra.

Kemendag also requested Rp 93.6 billion to support several national priorities.

This funding will be used for export facilitation, international trade negotiations, export MSME development, interregional trade, and other strategic agendas.

Then, Rp 134.73 billion is allocated to strengthen IT systems and trade digitalization to support the implementation of the Electronic-Based Government System (SPBE).

An additional Rp 90.68 billion is proposed to strengthen Indonesia’s trade representatives abroad.

This includes boosting promotion efforts of the Indonesia Trade Promotion Center (ITPC) and enhancing services at KDEI Taipei and ITPC Hamburg.

Besides requesting additional funds, Kemendag has been allocated a 2027 budget ceiling of Rp 1.56 trillion, or precisely Rp 1.5 trillion.

This represents a 20.48 percent increase, or Rp 265.6 billion, compared to the 2026 allocation of Rp 1.3 trillion.

The budget will be directed to support several trade targets for 2027.

Kemendag aims for the contribution of goods and services exports to gross domestic product (GDP) to reach 22 percent, a global export share of 1.26 percent, and export service value of 35.56 billion U.S. dollars.

Kemendag also targets Indonesia’s participation in the global value chain at 1.11 percent and interregional trade value reaching Rp 2,515 trillion.

On the program side, the additional budget will complement Kemendag’s agenda to expand market access, enhance MSME capacity, strengthen domestic trade, and boost Indonesia’s export competitiveness.