DPR and Government Target Zero Percent Extreme Poverty by 2027

REPUBLIKA.CO.ID, JAKARTA – The Indonesian House of Representatives (DPR RI) and the government have agreed on a target of zero percent extreme poverty by 2027 during discussions on the Macroeconomic Framework and Fiscal Policy Fundamentals (KEM-PPKF) as the basis for drafting the 2027 State Budget (RAPBN). For the same period, the national poverty rate is targeted to fall to a range of 6 percent to 6.5 percent.

Chairman of Commission XI of the DPR RI, Mukhamad Misbakhun, said the target is one of the agreements reached during the Growth Working Committee discussions with the government. “The poverty rate will be in the range of 6.0 percent to 6.5 percent. Extreme poverty is targeted at 0 percent,” Misbakhun stated during a working meeting between Commission XI of the DPR RI and the government on Thursday (11/6/2026).

Beyond the poverty target, the DPR and the government also agreed on a 2027 economic growth target in the range of 5.8 percent to 6.5 percent. Meanwhile, the open unemployment rate is targeted to be within the range of 4.30 percent to 4.87 percent.

In terms of basic macroeconomic assumptions, the rupiah exchange rate was agreed to be in the range of Rp16,800 to Rp17,500 per US dollar. The interest rate for 10-year government bonds (SBN) has been set within a range of 6.5 percent to 7.3 percent.

On the fiscal side, the state revenue ratio was agreed at 12.01 percent to 12.40 percent of gross domestic product (GDP). The 2027 state budget deficit is pegged at a range of 1.8 percent to 2.4 percent of GDP.

Misbakhun said all results of the working committee discussions have been agreed upon between Commission XI of the DPR RI and the government. “With this agreement, I declare the conclusions of this meeting agreed upon and adopted,” said Misbakhun.

Finance Minister Purbaya Yudhi Sadewa said the government will continue to oversee the implementation of priority programmes to achieve the targets set out in the 2027 KEM-PPKF. According to Purbaya, the 2027 economic growth target of 5.8 to 6.5 percent is a stepping stone towards the 8 percent economic growth target for 2029. “To this end, the government will continue to ensure priority programmes run effectively, strengthening fiscal, monetary, and financial sector policy synergies, including through the Danantara,” Purbaya said.