Prabowo Targets Rupiah at a Maximum of Rp17,500 per US Dollar by 2027

President of Indonesia Prabowo Subianto delivered his speech on the Macro Economic Framework and Key Economic Policy of the Fiscal Policy (KEM PPKF) for the 2027 RAPBN in a plenary session of the DPR RI on Wednesday, 20 May 2026. In the address, Prabowo targeted the 10-year tenor of government bonds (SBN) at a maximum of 7.3 percent. He also set a Rupiah exchange-rate target in the range of Rp16,800 to Rp17,500 per US dollar. ‘The interest rate on government bonds, the 10-year tenor, we will keep within 6.5 to 7.3 percent. Our exchange rate will be kept at Rp16,800 to Rp17,500 per US dollar. Fiscal and monetary strategies must be capable of maintaining our exchange rate stability against world currencies,’ Prabowo stated. He also announced the implementation of various national priority programmes. He noted that government spending is planned to be in the range of 13.62% to 14.80% of the Gross Domestic Product (GDP). ‘To support our various priority and vital programmes, government expenditure is planned to be within 13.62% to 14.80% of our GDP,’ he said. Prabowo also unveiled a target for national economic growth in 2027 of between 5.8% and 6.5%. ‘With the right economic strategy and prudent, sustainable fiscal policy, I am confident Indonesia’s economy can grow within 5.8% to 6.5% in 2027, moving towards 8% growth in 2029,’ he added. Separately, the government accounts for dynamics in the energy sector, with an oil production target of 602,000 to 615,000 barrels per day. For natural gas lifting, the target is 934,000 to 977,000 barrels of oil equivalent per day. The Indonesian Crude Price (ICP) is projected to move within US$70 to US$95 per barrel. The KEM-PPKF 2027 document forms the main foundation for drafting the RAPBN 2027 and reflects the broad strategic direction of Prabowo’s administration in maintaining macro stability while driving higher growth amid global challenges.