Fiscal 2027 Designed to Boost Higher Economic Growth, Targeting 6.5 Percent
Finance Minister Purbaya Yudhi Sadewa has stated that the direction of economic and fiscal policy for 2027 is designed to drive higher economic growth whilst accelerating improvements in public welfare. He made the statement whilst presenting the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF) during a working meeting with Commission XI of the House of Representatives (DPR RI) in Jakarta on Wednesday.
Purbaya said the pro growth–pro welfare strategy serves as the foundation for 2027 economic and fiscal policy, aimed at fostering higher growth and ensuring welfare is felt more swiftly by the public. The strategy is implemented through synergy of fiscal, monetary and financial sector policies, as well as strategic investment support, to strengthen national economic transformation.
“Through synergy of fiscal, monetary and financial sector policies, and strategic investment support, the government is targeting higher economic growth with a faster increase in welfare. Economic growth must be able to be felt broadly by all of society,” Purbaya said.
Through the pro growth–pro welfare strategy, the government is targeting 2027 economic growth in the range of 5.8 to 6.5 percent, as part of the trajectory towards 8 percent economic growth by 2029. To support this target, investment is projected to grow in the range of 6.5 to 7.5 percent, especially in high-value-added sectors. Purbaya assured that the government will continue deregulation and debottlenecking efforts to improve the national investment climate, including through simplifying licensing, strengthening legal certainty and improving cross-sectoral and institutional coordination.
At the same time, the government will maintain a healthy, credible and sustainable state budget through optimising state revenues, improving spending quality and prudent financing management. The aim is to maintain economic stability and accelerate national economic transformation. Optimism in achieving these targets is supported by the resilience of the national economy demonstrated in the first quarter of 2026. The Indonesian economy grew by 5.61 percent year-on-year, supported by inflation remaining under control at 3.08 percent, a trade balance surplus continuing for 72 consecutive months through April 2026, and foreign exchange reserves reaching US$144.9 billion, equivalent to 5.6 months of imports.
Deputy Chairman of Commission XI DPR RI, Dolfie Othniel Frederic Palit, criticised the 2027 KEM-PPKF document presented by Minister Purbaya for not containing a complete 2027 state budget posture. He cited the absence of a nominal target for tax revenue sought by the government next year. Dolfie said the 2027 KEM-PPKF document differed from previous years as it only set target ratios for revenue and expenditure against gross domestic product (GDP). According to the legislator, the DPR could not yet review the scale of the 2027 state budget, or the increases or decreases in state revenue and expenditure, because there was no nominal target benchmark set by the government.