Financial markets have responded positively to President Prabowo\nSubianto\u2019s delivery of the 2027 Draft State Budget (RAPBN) and its\naccompanying economic direction. The Jakarta Composite Index (IHSG)\nclosed up 1.59% at 6,401, while the rupiah strengthened 0.28% against\nthe US dollar on Friday (14\/8).<\/p>\n
Trimegah Sekuritas Indonesia Chief Economist Fakhrul Fulvian assessed\nthat the President\u2019s speech provided a clearer picture of Indonesia\u2019s\neconomic development path in the coming years. He noted that the\npositive market reaction was directly reflected in the strengthening of\nthe IHSG and the rupiah exchange rate.<\/p>\n
Fakhrul explained that the policy direction presented demonstrates an\neffort to unite various national economic forces to achieve higher\ngrowth, job creation, and equitable welfare. He highlighted that\nstrategic initiatives such as Danantara Sumberdaya Indonesia (DSI), the\nDanantara Development Management Fund, the Indonesia Financial Center,\nthe Strategic Commodities Exchange, and the Bullion Bank are all\ninterconnected.<\/p>\n
\"These various policies share the same goal: to encourage Indonesia\u2019s\neconomic resources to work more productively and generate greater added\nvalue for society,\" he stated.<\/p>\n
The government is now seen as positioning the business world, capital\nmarkets, the financial system, state-owned enterprises, natural\nresources, and the public as parts of the economic growth engine, rather\nthan relying solely on the state budget. In this vision, the\ngovernment\u2019s role is to build the foundation and create a business\nclimate, while the private sector and society become the drivers of\ninvestment, innovation, and business expansion.<\/p>\n
Regarding the budget posture, Fakhrul highlighted the RAPBN 2027\ndeficit target of 2.40% of GDP, which he said demonstrates the\ngovernment\u2019s commitment to maintaining fiscal discipline amid an\nambitious development agenda. He added that investors will scrutinise\nnot just the deficit figure but also how the development agenda is\nfinanced and private investment is encouraged.<\/p>\n
Although the development vision is increasingly clear, the market is\nstill awaiting detailed implementation plans. The main challenge for the\ngovernment is to ensure this vision is translated into consistent,\nmeasurable, and predictable policies for business actors. Fakhrul\nemphasised that strengthening export governance through DSI, developing\ndownstream industries, and boosting productivity in strategic sectors\nwill be key to long-term growth.<\/p>\n
Meanwhile, House of Representatives Commission XI Chairman Mukhamad\nMisbakhun appreciated the presentation of the Macroeconomic Framework\nand Fiscal Policy Principles (KEM-PPKF) for 2027. The President is\ntargeting economic growth of 5.8 to 6.5 percent, with state revenue set\nat 11.82 to 12.40 percent of GDP. Misbakhun noted that market\nparticipants will be watching closely to see how strongly the government\ncan provide confidence regarding fiscal stability and debt\nmanagement.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/market-welcomes-prabowos-economic-direction-in-2027-draft-budget-1786711833", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }