Indonesia targets rupiah at Rp16,800-17,500 per US dollar in 2027

“Our fiscal and monetary strategies must be capable of maintaining exchange rate stability against global currencies,” he said while presenting the government’s Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) in Jakarta on Wednesday.

The target was set amid pressure on the rupiah, which weakened to a record low of Rp17,706 per US dollar in mid-May 2026.

Prabowo said the government would maintain inflation within a range of 1.5-3.5 percent to support purchasing power and exchange rate stability.

The government also targets 10-year government securities yields at 6.5-7.3 percent.

The government projects the 2027 state budget deficit at 1.80-2.40 percent of gross domestic product (GDP), lower than the 2.92 percent recorded in 2025.

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State spending is projected at 13.62-14.80 percent of GDP, while state revenue is targeted at 11.82-12.40 percent of GDP.

The government expects economic growth to reach 5.8-6.5 percent in 2027 as part of efforts to achieve 8 percent growth by 2029.

Fiscal assumptions for 2027 also include Indonesian crude oil prices of US$70-95 per barrel, oil lifting of 602,000-615,000 barrels per day, and gas lifting of 934,000-977,000 barrels of oil equivalent per day.

Prabowo said the targets were aimed at reducing the poverty rate to 6.0-6.5 percent and lowering open unemployment to 4.30-4.87 percent.

He became the first Indonesian president to directly present the preliminary state budget framework before lawmakers during a plenary session of the House of Representatives (DPR).

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Translator: Aditya Ramadhan, Tegar Nurfitra