DPR Commission XI: 2027 State Budget Must Give Middle Class Room to Grow

Jakarta (ANTARA) - Chairman of Commission XI of the Indonesian House of Representatives (DPR RI), Mukhamad Misbakhun, has stated that discussions on the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for drafting the 2027 State Budget (APBN) must provide room for the middle class to grow. According to him, fiscal policy must be directed towards maintaining the strength of the domestic economy, particularly the middle-class group that has been the main driver of national consumption and economic activity. This is because economic challenges are not only being felt by low-income communities but are also beginning to be experienced by the middle class. “Many middle-class families today are facing a difficult situation. Expenditure is increasing, instalments continue, education costs are rising, while they also have to think about savings and their family’s future,” Misbakhun said in Jakarta on Friday. He stated that the 2027 economic growth target must not stop at just a figure. Growth must be able to create better jobs, strengthen the business world, and maintain people’s purchasing power. He further explained that the middle class plays a crucial role in sustaining national economic movement. When this group has the confidence to spend, buy a house, start a business, or invest, economic activity will grow stronger. Conversely, if they start to hold back consumption and delay various economic decisions, the impact will be quickly felt by the business world and employment. “Protecting the middle class is not solely about helping one segment of society. It is also about keeping Indonesia’s economic growth engine running,” he said. He noted that in the KEM-PPKF discussions for 2027, the government and DPR agreed on a state revenue ratio target in the range of 12.01 to 12.40 percent of GDP. He assessed that this target must be achieved through expanding the revenue base and higher-quality fiscal reform, not by adding pressure to the group of people who have already been compliant in paying taxes. “The middle class, which has been the main driver of the domestic economy, must not be further burdened. Fiscal reform must be carried out with the principles of fairness and growth promotion,” he said.