Economic Growth Must Go Hand in Hand with Poverty Reduction

The Chairman of the House of Representatives’ Budget Committee, M.H. Said Abdullah, has reminded the government to maximise the demographic bonus to drive inclusive and sustainable economic growth.

He stated that Indonesia must not lose the momentum of the demographic bonus and enter an era of an ageing society while still lagging behind in terms of education and welfare.

“We must ensure that this nation does not become increasingly aged, yet remains poor and poorly educated,” Said Abdullah asserted during a working meeting between the Budget Committee and the Government regarding the Macroeconomic Economic Framework and Main Points of Fiscal Policy (KEM PPKF) for the 2027 Draft State Budget (RAPBN) on Tuesday (9/6/2026).

During the meeting, Said expressed his appreciation for President Prabowo Subianto’s decision to directly present the 2027 KEM PPKF introduction during the plenary session of the House of Representatives. He noted that this represents a positive new tradition in the institutional relationship between the government and parliament.

The government has proposed basic macroeconomic assumptions for 2027, including an economic growth rate of 5.8–6.5 per cent, inflation of 1.5–3.5 per cent, an exchange rate of Rp16,800–Rp17,500 per US dollar, and State Securities (SBN) yields of 6.5–7.3 per cent. Additionally, the Indonesian Crude Price (ICP) is projected at 70–95 US dollars per barrel, with oil lifting at 602,000–615,000 barrels per day and gas lifting at 934,000–977,000 barrels of oil equivalent.

According to Said, high economic growth targets must proceed in tandem with efforts to reduce poverty, unemployment, and social inequality.

“In implementing economic growth strategies, they must be highly inclusive. The logic of fiscal policy must encompass a single orchestration of policies between economic growth targets, poverty reduction, unemployment, and social inequality, all of which must be equally accelerative,” he said.

Said also highlighted the pressures currently facing the national economy, ranging from the weakening of the rupiah exchange rate and high SBN yields to the downward trend of the Jakarta Composite Index (IHSG).