Prabowo Presents RAPBN 2027 Macro Assumptions: 2.5% Inflation and Rp17,500 Exchange Rate
President Prabowo Subianto has officially presented the macroeconomic framework for the 2027 State Budget (RAPBN). In his address at the first plenary session of the 2026–2027 sitting year at the DPR building on Friday (14/8), the Head of State emphasised the government’s commitment to maintaining price stability and accelerating national economic growth.
One of the key points highlighted by the President was inflation control. The government has set an inflation target of around 2.5% for 2027. This figure is considered a balance point for preserving public purchasing power while providing room for producers to remain productive.
“We will keep inflation at around 2.5%,” President Prabowo stressed during the presentation of the 2027 RAPBN and Financial Note.
On the economic growth front, the government showed strong optimism by setting a target of 6%. This target represents a significant increase compared to the 2026 State Budget target, which was previously set at 5.4%. The higher target reflects the government’s ambition to accelerate economic transformation in the second year of the current cabinet’s full term.
In addition, the government has set an assumption for the 10-year government bond (SBN) yield at 6.9%. This figure serves as a crucial parameter in shaping the state financing posture and managing the government’s debt burden to remain sustainable in both global and domestic financial markets.
Regarding the exchange rate, the government has assumed the rupiah will be at Rp17,500 per US dollar in 2027. This indicates a projected weaker exchange rate compared to the 2026 State Budget assumption of Rp16,500 per US dollar. The adjustment was made taking into account global monetary dynamics and Indonesia’s balance of payments conditions.
The formulation of these macro assumptions will serve as the foundation for the government in implementing strategic programmes throughout 2027, including efforts to strengthen infrastructure, downstream industrialisation, and improve human resource quality amid ongoing global economic challenges.