President Prabowo Outlines Macroeconomic Assumptions for 2027

President Prabowo Subianto delivers the Presentation of the Macroeconomic Framework and Fiscal Policy Principles for the 2027 State Budget Bill at the Plenary Session Room of Nusantara Building, the Parliamentary Complex, Jakarta, on Wednesday (05/20). (Photo by BPMI of Presidential Secretariat)

President Prabowo Subianto outlined the directions of Indonesia’s economic policy for 2027 at the Presentation of the Macroeconomic Framework and Fiscal Policy Principles. In his address, the President stated that state revenue in the 2027 State Budget is targeted to reach 11.82 to 12.40 percent of the Gross Domestic Product (GDP).

Meanwhile, state expenditure is projected to range between 13.62 and 14.80 percent of GDP in support of the Government’s priority programs.

“In terms of financing, the fiscal deficit in 2027 will be maintained within the range of 1.80 to a maximum of 2.40 percent of GDP. We will continue to strive to suppress and minimize this deficit,” the President stated during the Plenary Session of the House of Representatives (DPR RI) at the Nusantara Building of the Parliamentary complex, Jakarta, on Wednesday (05/20).

In addition to maintaining fiscal discipline, the Government also targeted stability in the national financial and monetary sectors. The interest rate for 10-year Government Securities (SBN) is expected to remain within the range of 6.5 to 7.3 percent.

“The rupiah exchange rate against the United States dollar is projected to range between Rp16,800 and Rp17,500. Our fiscal and monetary strategies must be capable of maintaining exchange rate stability against global currencies. Inflation will be kept within the range of 1.5 to 3.5 percent,” he remarked.

In the energy sector, the Head of State conveyed that the Indonesian crude price is estimated to be in the range of US$70 to US$95 per barrel. “Furthermore, crude oil lifting is targeted at 602,000 to 615,000 barrels per day, while gas lifting is projected at 934,000 to 977,000 barrels of oil equivalent per day,” he explained.

With appropriate economic strategies as well as prudent and sustainable fiscal policies, the President expressed confidence that Indonesia’s economy could grow within the range of 5.8 to 6.5 percent in 2027. According to him, the trajectory toward achieving 8 percent economic growth by 2029 must be tangibly reflected in the improved people’s welfare.

“Therefore, the poverty rate is targeted to decline to a range of 6.0 to 6.5 percent, from the previous target of 6.5 to 7.5 percent. Meanwhile, the open unemployment rate is expected to decrease to a range of 4.30 to 4.87 percent, compared to the previous target of 4.44 to 4.96 percent,” he stated.

“The Gini ratio is also expected to improve to between 0.362 and 0.367, from the previous target range of 0.377 to 0.380. The gap between the wealthiest and the poorest must not widen further; in fact, we must strive to continuously narrow it,” he added.

The President also set a target to increase the quality of human resources and the welfare of farmers. The human capital index is projected to improve to 0.575 from the previous 0.570, while the farmers’ welfare index is targeted to increase to 0.8038 from 0.7731 previously. The farmers’ exchange rate (NTP), which has reached its highest level in history, will continue to be pushed for further improvement, according to the President.

“We will also create employment opportunities on a massive scale. The proportion of formal employment is targeted to increase to 40.81 percent in 2027, from 35 percent in 2026, representing a rise of 5.81 percent,” the President concluded. (BPMI of Presidential Secretariat) (YA/MMB)