Jakarta, CNBC Indonesia - Financial market participants in Indonesia\nshould prepare for the week of 10-14 August 2026, where domestic\nattention will be focused on the State Address and the Financial Note\nfor the Draft 2027 State Budget (RAPBN). Meanwhile, from abroad, market\nparticipants will monitor the release of United States (US) inflation\ndata and UK economic growth figures.<\/p>\n
The attention of the public, business players, and investors will be\ndirected at the Joint Session of the House of Representatives (DPR), the\nPeople\u2019s Consultative Assembly (MPR), and the Regional Representative\nCouncil (DPD) to be held on Friday (14\/8\/2026). This moment is crucial\nbecause President Prabowo Subianto will deliver the State Address and\noutline the government\u2019s fiscal policy direction for the 2027 budget\nyear. Unlike previous years, which were held on 16 August, this year\u2019s\nJoint Session has been brought forward by two days because 16 August\n2026 falls on a Sunday.<\/p>\n
Prabowo is scheduled to deliver the State Address in the morning. In\nthe afternoon, the President will deliver the Government\u2019s Introductory\nStatement on the Draft Law (RUU) on the 2027 State Budget along with its\nFinancial Note. These two speeches will serve as important signals for\nthe market. Through the State Address, Prabowo will convey the\ngovernment\u2019s achievements in 2026 and future priorities. The public is\nwaiting to see which priority programmes will form the backbone of 2027.\nThe Free Nutritious Meals (MBG) programme is also eagerly anticipated,\nas it concerns not only state spending but also people\u2019s purchasing\npower, domestic product absorption, and economic activity in the\nregions.<\/p>\n
However, the market\u2019s greatest attention will be on the 2027 Draft\nState Budget. Through the Financial Note, the government will show how\nmuch the state will spend, where revenue will be obtained, and how the\ngovernment will finance its various priority programmes. A number of\nmacroeconomic indicators will also be in the spotlight, including the\neconomic growth target, inflation, the rupiah exchange rate, oil and gas\nlifting, and the Indonesian Crude Oil Price (ICP) assumption. These\nfigures are not just targets on paper; for investors, they provide a\npicture of the government\u2019s fiscal policy direction. For the business\nworld, these figures provide clues about demand prospects, investment,\nbusiness costs, and business opportunities in 2027.<\/p>\n
Previously, during the 23rd Plenary Meeting of the House of\nRepresentatives for the 2025-2026 Session, the Budget Committee\n(Banggar) and the government agreed on the Macroeconomic Framework and\nFiscal Policy Fundamentals (KEM-PPKF) for 2027, targeting economic\ngrowth of around 5.8% to 6.5%. Following this agreement, the government\nwill use the draft range as the basis for setting the initial figures\nfor the Draft State Budget Law and its Financial Note.<\/p>\n
From the global front, market participants will also focus on US\ninflation data for the July 2026 period. In the last release, the US\nrecorded a monthly deflation of 0.4% in June 2026, but annual inflation\nstill stood at 3.5%. Core inflation fell to 0% month-to-month but rose\nto 2.6% year-on-year. For July 2026, US inflation is expected to rise\n0.1% monthly and ease slightly to 3.4% annually. US inflation is likely\nto show easing energy-related price pressures, which had previously\nincreased in the months after the US began its war with Iran in late\nFebruary.<\/p>\n
Additionally, the UK economy is expected to record growth again this\nquarter as businesses find ways to cope with the impact of the Iran war,\nalthough some industries are expected to face increasing pressure,\naccording to economists. Data from the Office for National Statistics\nshowed the economy\u2019s resilience in the face of supply chain issues and\nprice pressures linked to the conflict, as well as a period of political\nuncertainty. The market consensus expects gross domestic product (GDP)\nto increase by 0.4% in the second quarter of 2026, driven by a\nstrengthening services sector and stockpiling by factories and\nmanufacturing companies in anticipation of supply shortages and price\nincreases.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/market-sentiment-next-week-us-inflation-to-prabowos-speech-1786279856", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }