President targets poverty rate at 6.0–6.5 per cent by 2027

Jakarta – President Prabowo Subianto stated that the government is targeting the poverty rate to lie within 6.0 to 6.5 per cent by 2027. The figure is to be achieved from the previous target of 6.5 to 7.5 per cent. The President also targets the open unemployment rate to fall to between 4.30 and 4.87 per cent in 2027, from 4.44–4.96 per cent in 2026. He further said that the Gini ratio should improve to the range of 0.362 to 0.367 from the previous target of 0.377 to 0.380. The gap between the wealthiest and the poorest should not widen further; indeed it must be narrowed, he added. The Gini ratio is a statistic used to measure income distribution inequality in the population. Prabowo also highlighted that the government wants to raise the Human Capital Index to 0.575 by 2027, up from 0.57 in 2026, through various priority programmes currently undertaken by the government. The Farmer Welfare Index is also targeted to rise to 0.8038 by 2027 from 0.7731 in 2026. “The Terms of Trade for farmers (NTP), which is already at a record high of 126, must be pursued further to push it higher,” he said. The proportion of formal job creation is also being expanded, with next year’s target set at 40.81 per cent compared with 35.00 per cent in 2026. This target will be achieved through a series of steps within the macroeconomic framework and fiscal policy, with the government aiming to optimise state revenue in 2027 at about 11.82 to 12.40 per cent of GDP. Moreover, state spending continues to be directed toward greater efficiency and productivity, with projections for 2027 at 13.62 to 14.80 per cent of GDP, and the financing deficit for next year expected to be contained at 1.80 to 2.40 per cent of GDP. The government targets economic growth of 5.8–6.5 per cent in 2027 and an inflation rate of 1.5–3.5 per cent. The yield on 10-year Government Securities (SBN) is to be kept in the range of 6.5–7.3 per cent. The Rupiah exchange rate against the US dollar is also targeted at Rp16,800 to Rp17,500. President Prabowo Subianto stated these macroeconomic forecasts while delivering the macroeconomic framework and main fiscal policy directions (KEM-PPKF) for the 2027 RAPBN in the 19th Plenary Meeting of the DPR RI for the 2025–2026 Session at the Parliament complex in Jakarta. He also became the first president to present the RAPBN introduction, which includes the macro framework and main fiscal policy directions, before the members of the DPR RI. The plenary session was attended by 451 DPR members, establishing a quorum according to DPR Speaker Puan Maharani. The meeting discussed three main agendas: the government’s presentation of the KEM-PPKF RAPBN for Fiscal Year 2027; the DPR Legislative Body’s report on the evaluation of the second changes to the Priority Prolegnas for 2026, followed by decision-making; and the fray statements on a DPR RI initiative bill concerning changes to Law Number 2 of 2002 on the Indonesian National Police, followed by decision-making to become a bill proposed by the DPR RI.