Prabowo’s Maiden Delivery of the KEM-PPKF Speech: Here Are the Key Points

JAKARTA, KOMPAS.com - Here are the key points from President of the Republic of Indonesia Prabowo Subianto’s speech delivering the Macro Economic Framework and the Outline of Fiscal Policy (KEM-PPKF) 2027 in the House of Representatives. Prabowo becomes the first RI president to personally present the government’s annual macroeconomic and fiscal policy directions in the DPR plenary session. Traditionally, the KEM-PPKF speech is read by the Finance Minister as the government’s representative. ‘I would like to extend my highest appreciation to the Leaders and Members of the MPR, DPR, and DPD RI for organizing this plenary session of the DPR, attended by members of the DPR and DPD RI, coinciding with the commemoration of National Awakening Day,’ Prabowo said in the DPR plenary at the Nusantara Building, Indonesian Parliament Complex, Jakarta, on Wednesday, 20 May 2026.

In his speech, Prabowo outlined several key points including Indonesia’s growth target, management of natural resources, and a warning to officials to reform the bureaucracy. The Head of State is optimistic that this can be realised with the right economic strategy and prudent, sustainable fiscal policy. ‘I am confident that Indonesia’s economy can grow within the range of 5.8 to 6.5 percent in 2027, moving toward growth of 8 percent in 2029,’ he said. Prabowo also wants that growth to be reflected in a real improvement in people’s welfare. He targets poverty to fall to the range of 6.0 to 6.5 percent from the previous target of 6.5 to 7.5 percent.

‘First, state revenue in the 2027 APBN. We target to reach the range of 11.82 to 12.40 percent of our gross domestic product,’ he said. To support that revenue target, the government has designed a measured share of state spending to fund various national strategic programs, ‘To support priority programs and our vital programs, government spending is planned at the range of 13.62 to 14.80 percent of our GDP,’ he added. ‘And we will continue to strive to tighten and reduce this deficit.’

In front of the members of the House, Prabowo believes Indonesia’s market could be much larger than Europe, because Indonesia has a demographic dividend and abundant natural resources. Indonesia has many commodities such as coal, nickel, copper, palm oil, rare earth metals, and marine wealth. ‘We have a demographic dividend that sustains domestic consumption and a large domestic market. Our market could be as big as Europe, and indeed our natural resources are abundant,’ he noted.