Video: Prabowo Orders Himbara Banks to Cut Public Loan Interest Rates

Jakarta – President Prabowo Subianto will deliver the Macro Economic Framework and the Core Policy Highlights of the Fiscal Policy (KEM-PPKF) for the RAPBN 2027 to the 19th Plenary Session of the DPR RI during the Fifth Session of the 2025-2026 Parliamentary Year.

Prabowo said Indonesia currently faces global economic and geopolitical challenges; therefore the Government is responsible for the welfare of the Indonesian people. The RAPBN is thus a tool to protect the people and their welfare.

In the KEM-PPKF RAPBN 2027, revenues are targeted at 11.82%–12.40% of GDP to support priority programmes, with the state deficit reaching 1.8%–2.4% of GDP. The Rupiah is targeted at Rp16,800–Rp17,500 per US dollar, with economic growth targeted at 5.8%–6.5%.

In addition, Prabowo conveyed developments in Indonesia’s economy in 2026 amidst global volatility. One of the government’s flagship programmes is 5,000 Fishing Villages in the next three years, which will include ice facilities; he also urged improvements to teachers’ welfare.

The government is also pushing for management and sovereignty of the sea. Indonesia remains the world’s largest exporter of coal, palm oil and ferro-alloy, with exports reaching Rp1,100 trillion per year, yet the tax ratio—revenue to GDP—lags behind the Philippines and Mexico.

Prabowo also highlighted the downward trend in the middle class and rising poverty.

For more details, watch Breaking News, CNBC Indonesia (Wednesday, 20 May 2026).