Member of the Indonesian House of Representatives from the Golkar\nParty faction, as well as the 15th Speaker of the People\u2019s Consultative\nAssembly and Vice Chairman for Political, Legal and Security Affairs at\nthe Indonesian Chamber of Commerce and Industry, Bambang Soesatyo, has\nassessed that the growth target in the 2027 Draft State Budget provides\na picture of Indonesia\u2019s development direction in facing future economic\nchallenges. The target is considered quite ambitious given that the\nIndonesian economy grew by 5.29 percent year-on-year in the second\nquarter of 2026.<\/p>\n
In the 2027 State Budget Bill and Financial Note delivered by\nPresident Prabowo Subianto at the House of Representatives Plenary\nSession on Friday, 14 August 2026, the government is targeting economic\ngrowth of 6 percent in 2027, inflation of 2.5 percent, an average\nexchange rate of Rp17,500 per US dollar, and a budget deficit of 2.4\npercent of gross domestic product.<\/p>\n
With that target, Bamsoet believes the 2027 Draft State Budget must\nbe able to drive growth while keeping the national economy healthy and\nstable.<\/p>\n
\u201cA 6 percent economic growth target is certainly not an easy task.\nBut I see this target as important to push Indonesia to move faster.\nWhat we must ensure is that the growth is truly felt by the public. Jobs\nincrease, people\u2019s incomes rise, small businesses develop, and\npurchasing power is maintained,\u201d Bamsoet said in a statement on\nSaturday, 15 August 2026.<\/p>\n
He made the remarks after the House of Representatives Plenary\nSession at the Parliamentary Complex in Senayan, Jakarta.<\/p>\n
He believes the government needs to optimise a number of sectors that\nhave proven capable of supporting the national economy in order to\npursue the 6 percent target in 2027. Household consumption, investment,\nthe processing industry, exports, downstreaming, tourism, the digital\neconomy, and micro, small and medium enterprises all need to be\nencouraged simultaneously.<\/p>\n
The government also needs to maintain business confidence so that\ninvestment continues to flow in and companies are willing to create new\njobs. The 5.29 percent economic growth in the second quarter of 2026\nshows that Indonesia\u2019s economic foundation remains quite strong, but\nadditional impetus is still needed for the 6 percent target to be\nachieved.<\/p>\n
\u201cWe cannot expect 6 percent growth from government spending alone.\nThe business world must also move, investment must come in, industry and\nMSMEs must develop. The government\u2019s job is to create a comfortable\nbusiness climate, provide legal certainty and supply supporting\ninfrastructure. If the private sector and the people\u2019s economy move,\njobs will open up as well,\u201d he said.<\/p>\n
He stressed the importance of maintaining a balance between\ndevelopment needs and the state\u2019s financial capacity. The government is\ntargeting state revenue of around Rp3,426 trillion and spending of\nRp4,097.2 trillion, with a deficit of 2.4 percent of GDP. According to\nhim, the gap needs to be managed carefully so that fiscal health is\nmaintained without sacrificing funding for programmes needed by the\npublic.<\/p>\n
\u201cWe must of course keep state finances healthy. But savings must also\nbe made carefully. Do not let budgets for education, health, food,\nenergy, infrastructure and job creation be cut while less important\nspending continues. Every rupiah of the state budget must be examined\nfor its benefits. If it has a major impact on society and the economy,\nit must be prioritised,\u201d he explained.<\/p>\n
He assessed that the government\u2019s eight priorities in the 2027 Draft\nState Budget have targeted the public\u2019s main needs, ranging from food\nsovereignty, energy and water self-sufficiency, education, health,\ndownstreaming and industrialisation, infrastructure and housing,\nstrengthening the people\u2019s economy and village development, to poverty\nreduction.<\/p>\n
However, he reminded that every programme must have measurable\nresults, such as increasing farmer productivity and maintaining food\nprice stability, expanding public access to decent housing, and ensuring\nthat downstreaming is able to create jobs and increase the added value\nof domestic commodities.<\/p>\n
\u201cThe government\u2019s priorities are already on target; what remains is\nhow they are implemented. The public must be able to see the results\ndirectly. Farmers must become more prosperous, food prices more\naffordable, electricity and energy available, children receiving a good\neducation, health services easier to access, and low-income people\nfinding it easier to own a home. Those are simple indicators of whether\nthe state budget is truly being implemented successfully,\u201d he\nconcluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bamsoet-offers-input-on-6-economic-growth-target-1786765914", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }