diff --git a/build/terraform b/build/terraform
index 158c6ed38a3a..844ac5802398 160000
--- a/build/terraform
+++ b/build/terraform
@@ -1 +1 @@
-Subproject commit 158c6ed38a3a91e90b1b4d47caf1b712b4f0882a
+Subproject commit 844ac58023984d8b5431fff2e9222de6ca27d162
diff --git a/build/terraform-beta b/build/terraform-beta
index 082e38acc341..91fc3b3dbbf5 160000
--- a/build/terraform-beta
+++ b/build/terraform-beta
@@ -1 +1 @@
-Subproject commit 082e38acc341b889b6034ff2de56e7ed77c3d4c2
+Subproject commit 91fc3b3dbbf50bb61b68a3e6e7f295529d0b90a4
diff --git a/third_party/terraform/utils/iam_folder.go b/third_party/terraform/utils/iam_folder.go
index c1f51988f5ef..7e21aee7f2fa 100644
--- a/third_party/terraform/utils/iam_folder.go
+++ b/third_party/terraform/utils/iam_folder.go
@@ -31,6 +31,9 @@ func NewFolderIamUpdater(d *schema.ResourceData, config *Config) (ResourceIamUpd
 }
 
 func FolderIdParseFunc(d *schema.ResourceData, _ *Config) error {
+	if !strings.HasPrefix(d.Id(), "folders/") {
+		d.SetId(fmt.Sprintf("folders/%s", d.Id()))
+	}
 	d.Set("folder", d.Id())
 	return nil
 }