Commission XI DPR: 2027 State Budget Must Give Room for Middle Class to Grow

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, said that discussing the Macro Economic Framework and Fiscal Policy Elements (KEM-PPKF) for the preparation of the State Budget (APBN) for 2027 must give room for the middle class to grow.

According to him, fiscal policy must be directed to maintain the strength of the domestic economy, especially the middle class group which has been the main driver of consumption and national economic activity. The reason is that economic challenges are not only felt by low-income people, but also begin to be felt by the middle class.

"Many middle-class families today face an unenviable situation. Expenses are increasing, installments are still running, education costs are rising, while they also have to think about savings and their family's future," said Misbakhun in Jakarta, Friday.

He said that the economic growth target for 2027 should not just stop at numbers. Growth must be able to create better jobs, strengthen the business world, and maintain people's purchasing power.

He also explained that the middle class has an important role in maintaining the movement of the national economy. When this group has the confidence to shop, buy a house, open a business, or invest, economic activity will grow stronger.

On the other hand, if they start to restrain consumption and delay various economic decisions, according to him, the impact will be quickly felt by the business world and employment.

"Maintaining the middle class is not merely about helping one group of people. This is also about keeping Indonesia's economic growth engine moving," he said.

He said that in discussing the 2027 KEM-PPKF, the government and the DPR agreed on a target state revenue ratio in the range of 12.01 to 12.40 percent of GDP.

He assessed that the target must be achieved through expanding the revenue base and more qualified fiscal reforms, not by adding pressure on groups of people who have always been obedient to pay taxes.

"Don't let the middle class, which has been the main driver of the domestic economy, be burdened even more. Fiscal reform must be carried out with the principle of fairness and encourage growth," he said.