Kadin Optimistic About 6 Percent Economic Growth in 2027
The Indonesian Chamber of Commerce and Industry (Kadin) has welcomed the economic and development policy direction presented by President Prabowo Subianto in the Government Statement on the Draft Law on the 2027 State Budget and its Financial Memorandum before the House of Representatives (DPR) on Friday (14/8).
Kadin Indonesia Chairman, Anindya Novyan Bakrie, assessed that the government’s agenda demonstrates a commitment to maintaining macroeconomic stability while accelerating structural transformation to achieve the 6 percent economic growth target in 2027. According to Anindya, the business community is ready to support this agenda through the spirit of Indonesia Incorporated, which strengthens collaboration between the government, businesses, state-owned enterprises, the Danantara Investment Authority, regional governments, MSMEs, universities, workers, and all stakeholders.
“Kadin Indonesia is ready to work hand-in-hand with the government. Our spirit is Indonesia Incorporated. The government and the business community do not walk separately, but are strategic partners to achieve the same goal: easier investment, growing businesses, and the creation of more quality jobs,” Anindya said.
Kadin considers the maintained strength of Indonesia’s economic fundamentals as an important asset for achieving this target. The President conveyed that S&P Global Ratings on 13 July 2026 maintained Indonesia’s credit rating at BBB with a stable outlook, keeping the country in the investment grade category. Anindya stated that this trust must be translated into real investment. Macroeconomic stability must be followed by legal certainty, regulatory consistency, ease of licensing, competitive logistics costs, and improved investment services.
“For the business world, trust is capital. When international rating agencies from both the West and the East give a positive assessment of Indonesia, this reinforces the message that Indonesia has good fundamentals and promising long-term prospects,” he said.
Kadin also highlighted the Draft 2027 State Budget with state expenditure of Rp4,097.2 trillion, an increase from Rp3,842.7 trillion in the 2026 State Budget. State revenue is targeted to reach Rp3,426 trillion, while budget financing is planned at Rp671.2 trillion with a deficit of 2.40 percent of GDP. The government has set a 2027 economic growth target of 6 percent, inflation at 2.5 percent, an exchange rate of Rp17,500 per US dollar, a 10-year government bond yield of 6.9 percent, an Indonesian crude oil price of US$75 per barrel, oil lifting of 610 thousand barrels per day, and gas lifting of 954 thousand barrels of oil equivalent per day.
Anindya assessed that the large state expenditure must create a multiplier effect on the economy and attract private investment. “State expenditure of over Rp4,000 trillion is a huge economic force. The challenge is how every rupiah of the state budget can create a multiplier effect and attract many times more private investment,” he said. Kadin encourages government projects with economic viability to be developed through public-private partnership schemes, so that fiscal space can be directed more towards basic services, social protection, and sectors that cannot yet be financed commercially.
The business community also supports the eight national priority programmes that are the focus of the 2027 Draft State Budget, namely food self-sufficiency; energy and water; education; health; downstreaming and industrialisation; infrastructure, housing and disaster resilience; strengthening the people’s economy and village development; and poverty reduction. “Kadin fully supports the eight government priorities because all of them lead to increased productivity and public welfare. What we need to build is the multiplier effect so that one government programme drives as many economic activities as possible,” Anindya said.
Kadin also welcomed the plan to build the Giant Sea Wall on the North Coast of Java, which is projected to take 15-20 years and is divided into 15 segments from Banten to Gresik, East Java. Anindya assessed that the project is not just about building a sea wall, but also concerns protecting economic and industrial areas, providing clean water, connectivity, and protecting the millions of people living in the Pantura area. “Kadin supports the government’s boldness in starting the Giant Sea Wall. This is a cross-generational project. What is being protected is not only the land, but also millions of residents, industrial centres, logistics networks and national economic assets,” he said.
Kadin also supports the plan to establish an Indonesian International Financial Centre (PFII) which will begin in Jakarta and be developed to Bali. The financial centre is expected to become a hub for banking, insurance, capital markets, fintech, carbon exchanges, bullion, Islamic finance, family offices, and investment management. “So far, there have been transactions with Indonesian underlying assets, but the financing or settlement of these transactions is done abroad. The PFII provides an opportunity to bring more of these value-added activities to Indonesia,” he said.
Furthermore, Kadin supports the establishment of a Strategic Minerals and Commodities Exchange, which is targeted to begin operations on 1 January 2027. The exchange is considered important for strengthening Indonesia’s position in determining the prices of strategic commodities in the global market. “If Indonesia has a large production share, Indonesia must also have a credible price discovery mechanism. It is not enough to be a producer. Indonesia must move up the value chain in world trade,” Anindya asserted.
Kadin also appreciated the government’s plan to renovate 10,000 community health centres in 7,280 sub-districts and improve 514 public health laboratories. The government is targeting the completion of renovations for all schools in need of repair by 2029 at the latest. According to Anindya, investment in education and health will determine the quality of human resources as well as productivity.