Prabowo Targets Poverty Reduction, Widening the Rich-Poor Gap

President Prabowo Subianto delivers a speech at the 19th DPR Plenary Meeting (ANTARA FOTO/RIVAN AWAL LINGGA)

JAKARTA - President Prabowo Subianto has set an ambitious target in the 2027 State Budget. The government wants the poverty rate to fall to 6 percent and social gaps to narrow.

In front of members of the DPR and DPD, Wednesday, May 20, Prabowo emphasized that economic growth should not only be enjoyed by certain groups.

"This growth must be reflected in the tangible improvement of people's welfare," said Prabowo.

The government targets the poverty rate to be in the range of 6 to 6.5 percent in 2027. This target is lower than the previous target which is in the range of 6.5 to 7.5 percent.

The open unemployment rate is also targeted to fall to 4.30 to 4.87 percent.

Prabowo pays great attention to economic inequality. The government targets the gini ratio or measure of inequality to fall to 0.362 to 0.367.

"The distance between the richest and the poorest should not get wider, we even have to fight to continue to narrow it," he said.

The government also targets a fairly high proportion of formal jobs. In 2027, formal employment is targeted to reach 40.81 percent, up from 35 percent the previous year.

"We will also open up massive employment opportunities," said Prabowo.

In addition, the farmer welfare index is targeted to rise to 0.8038. The Farmer Exchange Rate or NTP, which is currently at 126, is said to be the highest in history.

Prabowo said the government wanted economic growth to really feel down to the bottom, especially for farmers and workers.