Prabowo Bluntly Says the APBN Is Not Just a Financial Document—But This

Jakarta, CNBC Indonesia — President Prabowo Subianto has reiterated that the State Budget (APBN) is not merely a financial document of the state. He said the APBN is a form of a tool for the nation’s struggle.

‘The APBN is a tool to protect the people, to reinforce the foundations and pillars of the nation’s economy,’ Prabowo said during a plenary session at the MPR/DPR building, Senayan, Jakarta, on Wednesday 20 May 2026.

‘The APBN is a tool to ensure every citizen can live more prosperously, and as a tool to guide our journey forward,’ he added.

With this awareness, the government prepares an APBN that conforms to the mandate of the 1945 Constitution (UUD 1945).

‘A constitution is born from the arena of long struggle, the struggle for independence spanning hundreds of years, which has demanded the sacrifice of thousands of our ancestors — the aspiration to realise an Indonesia that is independent, sovereign, just and prosperous, standing on our own two feet,’ he emphasised.

Prabowo also named key points in the 2027 APBN. For poverty the target is 6.0% to 6.5%, lower than the 2026 target of 6.5-7.5%. The unemployment rate is targeted at 4.3% to 4.87%, lower than the 2026 target of 4.44-4.96%.

‘And that growth must be reflected in a tangible improvement in the welfare of the people, which is why the poverty rate is targeted to fall to the 6.0-6.5% range from the previous 6.5-7.5%. Meanwhile, the unemployment rate should drop to 4.3-4.87%,’ he said.

Prabowo also targets the Gini ratio in 2027 at 0.362-0.367, the human capital index at 0.575, the farmers’ welfare index at 0.8038, and the proportion of formal employment created at 40.81%.

He revealed that by 2027, economic growth is targeted at 5.8-6%. The exchange rate is in the Rp16,800-17,500 per US$ range. Inflation is expected to be between 1.5% and 3.5%.

‘The fiscal and monetary strategies must be capable of keeping our exchange rate stable against world currencies,’ he said.

Moreover, Indonesia’s crude oil price in 2027 is targeted at US$70-95 per barrel. Crude oil liftings are targeted at 602-615 thousand barrels per day, and natural gas liftings at 934-977 thousand barrels per day.

‘With the right economic strategy and prudent, sustainable fiscal policy, I am confident Indonesia’s economy will grow 5.8-6% toward 8% growth by 2029,’ he asserted.