President Prabowo Subianto presented the Macro Economic Framework and Fiscal Policy Elements (KEM-PPKF) as an initial step in preparing the Draft State Budget (RAPBN) for 2027.

In his speech at the DPR RI Plenary Meeting, Wednesday, May 20, 2026, Prabowo emphasized that the State Budget not only serves as a financial document of the state, but also becomes the main instrument of the government in fighting for the welfare of the people.

"I consider that the state budget is not merely a financial document of the state. The state budget is a manifestation of our struggle as a nation. The state budget is a tool to protect the people, a tool to strengthen the foundations and joints of the nation's economy, a tool to ensure that every citizen can live more prosperous and as a tool to become a guide for our journey forward," he said.

In the draft 2027 State Budget, the government targets state revenues to be in the range of 11.82 percent -12.40 percent of gross domestic product (GDP).

Meanwhile, state spending is planned at 13.62 percent - 14.80 percent of GDP with the budget deficit maintained at the level of 1.80 percent - 2.40 percent of GDP.

For the basic assumptions of the 2027 macro economy, the government targets economic growth in the range of 5.8 percent to 6.5 percent with inflation of 1.5 percent to 3.5 percent.

The interest rate on the 10-year State Securities (SBN) is projected to be at the level of 6.5 percent-7.3 percent.

The government also estimates that the rupiah exchange rate will range from Rp16,800 to Rp17,500 per US dollar. Meanwhile, the Indonesian crude oil price (ICP) is projected to reach US$70-US$95 per barrel.

In the energy sector, the crude oil lifting target is 602 thousand-615 thousand barrels per day, while the natural gas lifting is pegged at a range of 934 thousand-977 thousand barrels of oil equivalent per day.

In addition to focusing on economic indicators, the government also set a number of national development targets in 2027.

The poverty rate is targeted to fall to 6 percent-6.5 percent, while the open unemployment rate is expected to be in the range of 4.30 percent-4.87 percent.

The government also targets a gini ratio at the level of 0.362-0.367, a human capital index of 0.575, and a farmer welfare index of 0.8038.

Meanwhile, from the employment side, the proportion of formal job creation is targeted at 40.81 percent.


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