Prabowo's Message: Record Malpractice by Officials and the 2027 Fiscal Policy Framework

President Prabowo Subianto is set to deliver the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2027 Draft State Budget (RAPBN) before the 19th Plenary Session of the House of Representatives (DPR RI).

Prabowo stated that Indonesia is currently facing significant global economic and geopolitical challenges, placing the responsibility on the Government to ensure the welfare of the Indonesian people. Consequently, the Draft State Budget serves as a strategic tool to protect and enhance national prosperity.

Under the KEM-PPｷF RAPBN 2027, revenue is targeted at 11.82% to 12.40% of GDP to support priority programmes, with a state budget deficit maintained between 1.8% and 2.4% of GDP. The Rupiah is projected to trade between Rp 16,800 and Rp 17,500 per US Dollar, with economic growth targeted at 5.8% to 6.5%.

Furthermore, Prabowo addressed the economic landscape for 2026, noting the impact of global volatility. One of the government’s flagship programmes includes the development of 5,000 fishing villages over the next three years, which will be equipped with ice facilities, alongside initiatives to improve the welfare of teachers.

The Government is also pushing for maritime management and sovereignty. While Indonesia remains a leading global exporter of coal, palm oil, and ferroalloy, with annual exports reaching Rp 1,100 trillion, the President noted that Indonesia’s tax-to-GDP ratio lags behind countries such as the Philippines and Mexico. Additionally, Prabowo highlighted concerning trends regarding the shrinking middle class and rising poverty rates.