President: Economic growth in 2027 forecast at 5.8 to 6.5 per cent

Jakarta (ANTARA) – President of Indonesia, Prabowo Subianto, said the government projects a growth range of 5.8 to 6.5 per cent for 2027 through appropriate economic strategies and prudent, sustainable fiscal policy, aiming for 8 per cent growth in 2029. He stated this during the delivery of the key figures of the Macroeconomic Framework and the Main Fiscal Policy Principles (KEM PPKF) 2027 at the DPR building in Jakarta on Wednesday. The target must be reflected in real welfare improvements for the people, including reductions in poverty and open unemployment rates. The government also set a poverty reduction target of 6.0 to 6.5 per cent, down from the previous target of 6.5 to 7.5 per cent. Meanwhile, the open unemployment rate is targeted to fall to 4.30 to 4.87 per cent from the previous range of 4.44 to 4.96 per cent. To support priority and vital programs, the 2027 state expenditure in the APBN is planned at 13.62 to 14.80 per cent of GDP. On the revenue side, the target is 11.82 to 12.40 per cent of GDP, while the budget deficit will be kept within 1.80 to a maximum of 2.40 per cent of GDP, lower than the 2025 deficit of 2.92 per cent. President Prabowo Subianto delivered the remarks directly before the DPR RI as part of the macroeconomic framework and main fiscal policy principles (KEM-PPKF) of the RAPBN 2027 in the 19th Plenary Session of the DPR RI for the 2025-2026 Session Year. He also became the first Indonesian President to present the RAPBN introduction, including the macroeconomic framework and main fiscal policy principles, to the DPR. The session was attended by 451 DPR members, with the quorum set by DPR Speaker Puan Maharani. The President was accompanied by Vice President Gibran Rakabuming Raka and members of the Red-and-White Cabinet, including Coordinating Ministers Airlangga Hartarto, Agus Harimurti Yudhoyono, Pratikno, Muhaimin Iskandar, and Djamari Chaniago, plus Finance Minister Purbaya Yudhi Sadewa, Foreign Minister Sugiono, State Secretary Prasetyo Hadi, Energy and Mineral Resources Minister Bahlil Lahadalia, and Agriculture Minister Andi Amran Sulaiman. Also present in the same room were Bank Indonesia Governor Perry Warjiyo, OJK Chair Friderica Widyasari Dewi, and Deposit Insurance Agency Chair Anggito Abimanyu. The plenary session discussed three main items: the government’s presentation of the KEM-PPKF RAPBN 2027; the Legislative Body’s evaluation of the second changes to Prolegnas Priority Bills for 2026, followed by decision-making; and faction responses to the Commission III DPR RI initiative Bill on changes to Law No. 2 of 2002 on the Indonesian Police, followed by decision-making on the bill proposed by DPR RI.