Democratic Party Responds to Prabowo's Speech: 2027 Expected to See Extraordinary Economic Growth

JAKARTA, KOMPAS.com - Secretary-General of the Democratic Party, Herman Khaeron, expressed optimism about Indonesia’s economic growth in 2027 while referencing President Prabowo Subianto’s speech in the DPR on Wednesday 20 May 2026. He said this when opening a discussion titled ‘Global Economic-Political Impacts Three Months into the Iran–US–Israel War: What Mitigation Steps Does Indonesia Need to Take?’ at the Democratic Party’s Central Leadership Office, Pegangsaan, Menteng, Central Jakarta, Thursday 21 May 2026.

‘If we followed what President Prabowo Subianto said yesterday, we can sense that psychologically, we are optimistic that 2027 will see an extraordinarily high growth in the economy,’ said Herman, at the Democratic Party’s DPP, Pegangsaan, Menteng, Central Jakarta, Thursday (21 May 2026).

He said the government targets state revenue at around 11.82 percent to 12.8 percent of GDP. The government also expects the budget deficit to remain within a safe range, around 1.8 percent to 2.4 percent of GDP. ‘This, I think, is also important: will the speakers indicate whether these assumption figures set by the government will be achieved given the current economic conditions, with the global economy still uncertain and lacking dynamics,’ he stressed.

Herman added that the government projects Indonesia’s economic growth in 2027 to be in the range of 5.8% to 6.5%. He said that 6.5% growth has occurred before during the tenure of the sixth Indonesian President Susilo Bambang Yudhoyono (SBY). ‘If growth of 6.5% is to be achieved, the conditions would resemble the SBY era: average 6.5% would mean the population is prosperous, incomes are adequate, schooling is smooth, and defence and security are stable,’ he said.

He also noted street robberies that have roamed communities. He also touched on current social and economic conditions, including rising crime rates that frequently appear on social media.

‘A sign of a country whose economy is not in a good condition is, among other things, an increase in crime rates. Is that correlated with today’s economic situation? Of course not within my remit as part of this event,’ he said.

In addition, Herman said the government targets inflation at around 1.5% to 3.5% in 2027. The rupiah is expected to range between Rp 16,800 and Rp 17,500 per US dollar, while world oil prices are assumed to be between US$70 and US$90 per barrel.

Nevertheless, Herman stressed that the Democratic Party remains fully behind President Prabowo Subianto’s administration. ‘However, the Democratic Party fully supports the administration of President Mr Prabowo Subianto,’ he concluded.