Prabowo's Promise for 2027: Poverty and Unemployment to Fall

Jakarta, CNBC Indonesia - President Prabowo Subianto said that strong fiscal management is expected to reduce unemployment and poverty in 2027. The poverty rate is targeted at 6.0% to 6.5%, lower than the 2026 target of 6.5% to 7.5%. Meanwhile, the unemployment rate is targeted at 4.3% to 4.87%, lower than the 2026 target of 4.44% to 4.96%.

‘Thus growth should be reflected in a real improvement in people’s welfare, therefore the poverty rate is targeted to fall to 6.0-6.5% from the previous target of 6.5-7.5%. Meanwhile, the unemployment rate must fall to the 4.3% - 4.87% range,’ Prabowo said during a Plenary Session at the MPR/DPR Building in Jakarta, Wednesday (20/5/2026).

At the meeting, Prabowo also targeted the Gini ratio for 2027 at 0.362-0.367, the Human Capital Index at 0.575, the Farmers’ Welfare Index at 0.8038, and the share of formal job creation at 40.81%.

Prabowo also revealed that in 2027 the economy is targeted to grow at 5.8-6.5%. The exchange rate would be around Rp16,800-17,500 per US$. Inflation at 1.5%-3.5%.

‘This fiscal and monetary strategy must be able to keep our exchange rate stable against world currencies,’ he said.

Furthermore, Indonesia’s crude oil price in 2027 is targeted at US$70-95 per barrel. Crude oil lifting is targeted at 602-615 thousand barrels per day and natural gas lifting at 934-977 thousand barrels per day.

‘With the right economic strategy, prudent and sustainable fiscal policy, I am confident Indonesia’s economy will grow 5.8-6% toward 8% growth by 2029,’ he asserted.