Indef: Private sector's role crucial to achieving 6.5% economic growth by 2027
Indef says strategic private sector involvement is the key to reaching the 2027 economic growth target. The government, under President Prabowo Subianto, projects Indonesia’s economy to grow at around 5.8 to 6.5 percent.
Indef economist Eko Listiyanto stated that the target is optimistic, given the government’s fiscally prudent design; the private sector must play a role as the main engine of growth, because government spending will be more moderate.
‘With such prudent fiscal design, the growth engine is expected to come from the private sector, since government spending will be more moderate,’ Eko said in Jakarta on Wednesday, 20 May.
Earlier, President Prabowo Subianto delivered the Macro Economic Framework and the Pokok-pokok Kebijakan Fiskal (KEM-PPKF) for the RAPBN 2027 in a plenary session of the DPR RI. In his speech, the President stressed that economic growth must have a direct impact on the welfare of the people.
The government has set a number of ambitious social indicators for 2027, including the poverty rate targeted to fall to the range of 6.0 to 6.5 percent (from the previous target of 6.5-7.5 percent), and the Open Unemployment Rate (TPT) targeted to fall to around 4.30 to 4.87 percent.
To support priority programmes, the government designed the state expenditure in the 2027 APBN to be in the range of 13.62 to 14.80 percent of Gross Domestic Product (GDP). Meanwhile, government revenue is targeted at 11.82 to 12.40 percent of GDP.
The moment of presenting the KEM-PPKF marked a new milestone, with President Prabowo Subianto becoming the first Indonesian President to directly present the RAPBN preludes, including the macroeconomic framework and the main fiscal policy, before members of the DPR RI.
With more moderate and measured government spending, optimising private investment and strengthening the competitiveness of the national industry become the pillars to ensure that growth above 6 percent is not merely a figure but a sustainable economic reality.
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