President Prabowo Subianto is due to unveil his 2027 budget proposals on Friday at a sensitive moment for Indonesia, with investors treating the package as a test of fiscal discipline, central bank independence and the government's interventionist economic agenda. He will outline broader policy themes in an Independence Day speech before presenting the fiscal framework to parliament. Economists say markets want reassurance that the deficit will stay below the 3% of GDP legal ceiling after repeated policy surprises, with the rupiah hovering near 18,000 per dollar, the 2026 deficit projected at about 2.85% versus 2.48% initially proposed, and interest costs expected by S&P Global Ratings to remain above 15% of revenue through 2027. Attention is also on Bank Indonesia (the country's central bank) after acting governor Destry Damayanti was nominated to lead it, and on Danantara Sumberdaya Indonesia, the new state body that could either supervise or more directly control critical commodity exports. The political backdrop is difficult: Prabowo's approval rating has fallen 30 percentage points in eight months to 51%, his free meals program was cut to $13 billion from $21 billion and is under a graft investigation, consumer spending slowed in the second quarter, and analysts say he must address doubts over growth, fuel subsidies and the state's expanding role while defending flagship priorities.