Gov’t Targets 6 Percent Economic Growth in 2027

The Indonesian Government is aiming for 6 percent economic growth in 2027 to maintain economic stability and fiscal sustainability. This target serves as the main direction of economic and fiscal policies in drafting the 2027 State Budget Proposal (RAPBN), aimed at driving higher economic growth while accelerating the improvement of public welfare.

“To drive higher economic growth, reaching 6 percent in 2027, an acceleration of investment growth up to 7 percent is required,” Minister of Finance Purbaya Yudhi Sadewa said during a Working Meeting with Commission XI of the House of Representatives (DPR RI) regarding the Introduction of Macroeconomic Assumptions for the 2027 State Budget Bill in Jakarta on Tuesday (09/01).

In achieving this target, the Minister said, collaboration among the Government, the private sector, and Indonesia’s sovereign wealth fund Danantara will be fostered. Government investment will act as a catalyst, while the private sector is encouraged to become the main engine of investment. Danantara will also contribute to investments in strategic sectors and downstream processing.

Furthermore, the Minister explained that amid unpredictable global landscape, Indonesia’s economy continues to show resilience. In the first semester of 2026, the economy grew by 5.45 percent with controlled inflation. Meanwhile, as of the end of July 2026, state revenue grew by 21.3 percent and the budget deficit stood at 0.91 percent of Gross Domestic Product (GDP).

“The economic resilience and solid fiscal performance maintained throughout 2026 serve as a strong foundation for formulating the 2027 economic and fiscal policies,” he said.

To maintain growth momentum, the Minister stated that the Government will strengthen macroeconomic stability by controlling inflation, supporting competitive interest rates, and stabilizing the rupiah exchange rate. These steps are expected to safeguard purchasing power while increasing confidence and certainty for the business sector.

“This stability is a fundamental foundation to create certainty, increase economic actors’ confidence, and encourage sustainable investment,” the Minister stated.

In line with efforts to strengthen investment and maintain economic growth momentum, the Government is also continuing to promote the optimization of strategic sectors, particularly oil and gas, through increased lifting, accelerated development of oil and gas reserves, technology utilization, and improved investment climates in upstream oil and gas via business certainty, fiscal incentives, and regulatory streamlining.

The Minister also said that the acceleration of economic growth will be accompanied by a commitment to maintaining fiscal health. The Government is continuing fiscal reform through revenue optimization, improved spending quality, and prudent and sustainable deficit financing.

“Various efforts to drive higher economic growth, strengthen investment, and maintain economic stability must be supported by a healthy, credible, and sustainable state budget,” he stated.

The commitment to maintain a healthy, prudent, and sustainable state budget is reflected in the overall posture of the 2027 State Budget Bill. State revenue is planned at Rp3,426 trillion and state expenditure at Rp4,097.2 trillion, with the deficit maintained at 2.40 percent of GDP.

“This State Budget Bill posture reflects a balance between the need to support development acceleration and the commitment to maintaining fiscal sustainability,” the Minister elaborated.

The 2027 macroeconomic assumptions include 6 percent economic growth, 2.5 percent inflation, a 6.9 percent interest rate for 10-year government bonds (SBN), and an exchange rate of Rp17,500 per USD. Meanwhile, the Indonesian Crude Price (ICP) is set at USD75 per barrel, with oil lifting at 612.5 thousand barrels per day and gas lifting at 954 thousand barrels of oil equivalent per day.

Economic growth in 2027 is further directed toward improving public welfare. The Government targets the poverty rate to drop to 6-6.5 percent, the open unemployment rate to 4.3-4.87 percent, and the Gini ratio to 0.362-0.367.

“Solid stability and economic growth supported by effective fiscal policies are the fastest drivers to improve public welfare,” the Minister concluded.

Through enhanced investment, productivity, and fiscal reform, the Government continues to foster strong and sustainable economic growth aimed at achieving 6 percent growth in 2027 and elevating the welfare of the community. (PR of Ministry of Finance/IAN/DND – PR of Ministry of State Secretariat) (FI/AW)