President Prabowo Sets Target to Reduce Poverty to 6 Percent by 2027

President Prabowo Subianto has set an ambitious target to reduce the national poverty rate to around 6.0% to 6.5% by 2027, lower than the previous target of 6.5% to 7.5%. The target was announced as he outlined the Macro Economic Framework and the Main Policies of the Fiscal Policy (KEM-PPKF) at the 19th Plenary Session of the House of Representatives (DPR RI) during the 2025-2026 session in Jakarta on Wednesday, 20 May 2026. ‘The poverty rate is targeted to fall within the 6.0 to 6.5 percent range. The gap between the wealthiest and the poorest must not widen further; in fact, we must strive to narrow it,’ President Prabowo told the 451 DPR members in attendance. Beyond poverty, the government also targets improvements in the Gini ratio to reduce economic inequality. The Gini ratio target is set at 0.362 to 0.367, an improvement from the previous target of 0.377 to 0.380. The labour market is a priority, with a target to reduce open unemployment to 4.30-4.87 percent. The government aims to raise the share of formal job creation to 40.81 percent by 2027, a significant jump from the 2026 target of 35.00 percent. In the KEM-PPKF document, the government projects growth of 5.8% to 6.5% with inflation kept within 1.5% to 3.5%. However, the government also anticipates global dynamics, setting the rupiah exchange-rate assumptions against the United States dollar at Rp16,800 to Rp17,500. Meanwhile, the 10-year government bond yield should be maintained at 6.5% to 7.3%. The direct appearance of President Prabowo in presenting the KEM-PPKF marks the first time he has presented the RAPBN in person before lawmakers, whereas this has typically been done by the Finance Minister. President Prabowo Subianto also warned that he would use military radar and advanced satellites to track bunkers and illicit assets of corrupt officials and rogue officers. The plenary session agenda covers the Macro Economic Framework and Main Policy of Fiscal Policy as well as the 2027 RAPBN presented directly by President Prabowo Subianto. President Prabowo Subianto attended the plenary session at the Indonesian Parliament complex in Jakarta on Wednesday (20/5) to discuss the macroeconomy and fiscal policy.