Prabowo Sets Ambitious Target as Indonesian Economy Aims to Reach 6.5% in 2027

Jakarta — President Prabowo Subianto targets Indonesia’s economic growth to reach 5.8 per cent to 6.5 per cent in 2027. That target forms the foundation toward 8 per cent growth in 2029. Prabowo delivered the target in a speech on the Macro Economic Framework and Fiscal Policy Pillars (KEM PPKF) at the plenary session of the Indonesian House of Representatives (DPR RI) on Wednesday, 20 May 2026. The President emphasised the importance of fiscal stability, inflation control, and strengthening the rupiah’s exchange rate. ‘With the right economic strategy, prudent and sustainable fiscal policy, I am confident Indonesia’s economy can grow within the range of 5.8 to 6.5 per cent in 2027, heading toward 8 per cent growth in 2029,’ Prabowo said. The government targets state revenue in the 2027 General Allocation Budget (APBN) to be in the range of 11.82 per cent to 12.40 per cent of Gross Domestic Product (GDP). ‘National revenue in the 2027 APBN, we target to reach the range of 11.82 to 12.40 per cent of our GDP to support our priority programmes and vital national programmes,’ he said. State expenditure is planned to be in the range of 13.62 per cent to 14.80 per cent of GDP. The budget is directed to support various government priority programmes and vital national programmes. The government also targets keeping the 2027 APBN deficit within the range of 1.80 per cent to a maximum of 2.40 per cent of GDP. Prabowo said the government will ensure the deficit remains healthy and sustainable. ‘State expenditure is planned to be in the range of 13.62 to 14.80 per cent of our GDP. On the financing side, the 2027 deficit will be kept in the range of 1.80 to a maximum of 2.40 per cent of GDP,’ he concluded. The rupiah’s exchange rate against the United States dollar (US$) is expected to move in the range of Rp 16,800 to Rp 17,500 per US dollar. According to Prabowo, fiscal and monetary strategies must maintain rupiah stability amid global economic dynamics.