DPR Reminds Government That 2027 State Budget Blueprint Must Accommodate the Middle Class

Jakarta, CNBC Indonesia - Chairman of Commission XI of the Indonesian House of Representatives (DPR RI), Mukhamad Misbakhun, has stressed that discussions on the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) must be directed towards maintaining the strength of the domestic economy. In particular, he highlighted the middle class, which has been the main driver of national consumption and economic activity. He noted that current economic challenges are not only being felt by low-income communities but are also beginning to impact the middle class.

“Many middle-class families today are facing a difficult situation. Expenditure is increasing, loan instalments continue, education costs are rising, while they also have to think about savings and their family’s future,” Misbakhun stated in a written statement in Jakarta on Friday (12/6/2026).

He therefore assessed that the economic growth target for 2027 must not merely be a numerical figure. Growth must be capable of creating better employment opportunities, strengthening the business sector, and preserving people’s purchasing power. Misbakhun explained that the middle class plays a crucial role in sustaining national economic momentum. When this group has the confidence to spend, buy houses, start businesses, or invest, economic activity will grow stronger. Conversely, if they begin to curb consumption and delay various economic decisions, the impact will be quickly felt by the business world and the labour market.

“Safeguarding the middle class is not just about helping one segment of society. It is also about keeping Indonesia’s economic growth engine running,” he said. In the KEM-PPKF discussions, the government and the DPR have agreed on a state revenue ratio target in the range of 12.01 to 12.40 percent of GDP. Misbakhun assessed that this target must be achieved through broadening the revenue base and implementing higher-quality fiscal reform, rather than by increasing pressure on groups that 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.