Prabowo Presents 2027 State Budget, Targets 6 Percent Economic Growth

The government has set a number of basic macroeconomic assumptions as the foundation for drafting the 2027 State Revenue and Expenditure Budget Plan (RAPBN). This was conveyed by President Prabowo Subianto in his speech on the Submission of the 2027 Fiscal Year State Budget Bill and Financial Note at the Plenary Session of the Indonesian House of Representatives (DPR RI) in the Parliament Complex, Senayan, Friday (14/8).

In the draft, economic growth is targeted to reach 6 percent. This figure is higher than the economic growth assumption in the 2026 State Budget of 5.4 percent.

Meanwhile, inflation will be maintained at 2.5 percent, the 10-year government bond yield is estimated at 6.9 percent, and the exchange rate is in the range of Rp17,500 per US dollar.

“The Indonesian crude oil price is estimated at US$75 per barrel. Oil lifting is targeted at 610 thousand barrels per day and gas lifting at 954 thousand barrels of oil equivalent per day,” the President explained.

With stronger growth and an effective state budget, he continued, poverty in 2027 is targeted to fall to a range of 6.0 percent to 6.5 percent, from the 2026 State Budget target of 6.5 percent to 7.5 percent.

The open unemployment rate in 2027 is then targeted to fall to a range of 4.30 percent to 4.87 percent, down from 4.44 to 4.96 percent in 2026.

The Gini ratio is targeted to improve to 0.362 to 0.367 from this year’s target of 0.377 to 0.380, and the Human Capital Index is to increase to 0.575.

“These figures will be safeguarded through holistic and consistent fiscal reform. State revenue will be optimised further. Revenue leakage must be minimised, and spending efficiency will continue,” Prabowo stressed.