DPR Plenary Session Approves 2027 State Budget Bill into Law
Jakarta (ANTARA) - The 7th Plenary Session of the DPR for the first session of the 2026-2027 period has approved the State Budget Bill (RUU APBN) for the 2027 Fiscal Year, officially enacting it as Law.
During the meeting held at the DPR Building in Jakarta on Tuesday, all political party factions expressed their approval of the bill.
“The time has come for us to request the approval of the factions regarding the 2027 Fiscal Year State Budget Bill; can it be approved as Law?” stated the Speaker of the House, Puan Maharani, followed by the striking of the gavel to signify approval.
The Chairman of the DPR Budget Committee, Said Abdullah, explained the basic macroeconomic assumptions for 2027 agreed upon during the discussions, which include an economic growth rate of 6 per cent and inflation at 2.5 per cent.
According to him, the 6 per cent economic growth target is necessary to expand Indonesia’s economic pie. With a larger economic scale, it is expected that the people will increasingly benefit from production and consumption activities.
“The challenge is certainly not easy; the strategy that has been and will be continued by the government is to increase the added value of exports and investment,” said Said while reading his report.
He also noted that household consumption remains a primary pillar in the national gross domestic product structure. Therefore, he stated, a low inflation target must be a necessity.
In relation to the need for low inflation, Parliament is in alignment with the Government and Bank Indonesia that the Rupiah exchange rate must remain controlled. In 2027, Bank Indonesia and the Government aim to manage the Rupiah exchange rate within the range of 17,500 per US dollar.
“This step is to ensure that pressure on the fiscal and real sectors does not become unsustainable,” he said.
Furthermore, the DPR and the Government have also agreed to set the 10-year sovereign bond interest rate at 6.9 per cent, the price of Indonesian crude oil at 75 US dollars per barrel, oil lifting at 612,500 barrels per day, and gas lifting at 954,000 barrels of oil equivalent per day.
The 2027 State Budget does not rely solely on achieving high economic growth. According to Said, high economic growth is meaningless if the people are left behind in the movement of development.
Therefore, the DPR Budget Committee and the Government have agreed on several indicators for public welfare to be achieved next year, including an open unemployment rate of 4.30-4.87 per cent, a poverty rate of 6-6.5 per cent, extreme poverty at 0-0.5 per cent, and a Gini ratio of 0.360-0.365.
Additionally, the human capital index is targeted at 0.575, the farmer welfare index at 0.8038, the farmer terms of trade at 126-128, the fisherman terms of trade at 106-110, the proportion of formal employment at 40.81 per cent, new job creation at 2.57-3.49 million people, GNI per capita at 5,800-5,840 US dollars (IDR 98.54-99.22 million), a reduction in greenhouse gas emission intensity by 39.57 per cent, and an environmental quality index of 76.84.
“The 14 indicators above serve as measurement instruments to observe a more comprehensive aspect between the achievement of public welfare and the control of environmental quality as a mitigation for development,” said Said.