Prabowo Reveals 2027 Economic Growth and Rupiah Exchange Rate Targets in the DPR, Here Are the Figures

Jakarta — The government aims to accelerate the national economy to lay the foundation for higher growth later this decade. The target is accompanied by fiscal projections, inflation, and exchange-rate stability. President Prabowo Subianto has set Indonesia’s growth target for 2027 at between 5.8% and 6.5%, as a stepping stone to 8% growth in 2029. ‘I am confident Indonesia’s economy can grow within 5.8–6.5% in 2027 towards 8% in 2029, and the growth must be reflected in a real improvement in people’s welfare,’ Prabowo said during a Plenary Session at the Indonesian House of Representatives complex, Jakarta, Wednesday (20 May 2026). In the framework of the 2027 State Budget, the government targets state revenue at 11.82–12.40% of GDP. This revenue will be used to support various government priority programmes. Meanwhile, government spending is projected to reach 13.62–14.80% of GDP. With this structure, the 2027 budget deficit is set at around 1.80–2.40% of GDP, still below the 3% maximum deficit as provided by law. ‘We will continue to strive to reduce and narrow the deficit,’ Prabowo said. The government also sets an inflation target at 2.5% plus-minus one percentage point in 2027, the same as the current year’s target. Price stability is considered crucial to maintaining household purchasing power while supporting economic growth. From the macro energy assumptions, Indonesia’s crude oil price is expected to range from $70 to $95 per barrel. Oil lifting is targeted at around 602,000 to 615,000 barrels per day, while gas lifting is set at 934,000 to 977,000 barrels per day. The government also targets a 10-year government securities yield in the range of 6.5% to 7.3%. The rupiah exchange rate is projected to be between Rp16,800 and Rp17,500 per US dollar as part of a strategy to maintain macroeconomic stability. ‘The rupiah against the US dollar will be in the range of Rp16,800–Rp17,500 per US dollar. Our fiscal and monetary strategies must be strategic enough to keep our exchange rate stable against global currencies,’ Prabowo said.