JAKARTA - The government targets Indonesia's economic growth to be in the range of 5.8 percent to 6.5 percent in 2027, and the target is a step towards economic growth of 8 percent in 2029.
Minister of Finance Purbaya Yudhi Sadewa conveyed that the Government expressed its appreciation for the support of various parties for the higher economic growth target in 2027 and as a stage towards 8 percent growth in 2029.
"This higher economic growth rate is expected to be a solid foundation for accelerating the improvement of the welfare of all Indonesian people," he said in the 21st DPR RI Plenary Meeting, Tuesday, June 9.
Purbaya said that to achieve this target, the government has prepared a number of key strategies, namely first, strengthening the synergy of fiscal, monetary, and financial sector policies so that they support each other.
Second, accelerate high-value-added investment oriented towards exports and strengthen the role of the fund between to encourage productive investment in strategic sectors and long-term investment through increased participation of global investors.
"The investments made are focused on strategic sectors that are able to strengthen Indonesia's position in the global supply chain and absorb labor with better skills and wage levels," he said.
On the other hand, he added that the government also encourages an increase in people's purchasing power through the effectiveness of social protection programs, inflation control, price stability, and expansion of employment opportunities so that household consumption continues to grow strongly.
Purbaya said the government also ensured that various flagship programs ran effectively and with quality so as to provide a large multiplier effect for the economy and tangible benefits for the community.
"Various priority programs such as Free Nutritious Meals, Red and White Village/Village Cooperatives, and People's Schools continue to be encouraged to be more effective and quality so as to create a wide multiplier effect," he explained.
According to him, through these various steps, the government is optimistic that economic activity will move faster, the real sector will be stronger, public consumption will increase, and investment will be more enthusiastic so that it can encourage Indonesia's economic growth to reach 5.8 percent to 6.5 percent in 2027 as a step towards 8 percent growth in 2029.
In addition, he expressed his appreciation to all factions of the DPR RI for various views and constructive input on the Macro Economic Policy and Fiscal Policy Elements (KEM-PPKF) for 2027.
"All of these views and inputs are important notes and attention for the government, as well as giving confidence that we all have the same spirit and commitment to continue to maintain that the Draft State Budget (RAPBN) for the 2027 fiscal year is healthy and effective to support the development agenda," he said.
Purbaya explained that the 2027 KEM-PPKF has a strategic role in supporting the direction of national development and the document is the first KEM-PPKF delivered directly by President Prabowo Subianto.
"KEM-PPKF in 2027 is the first KEM-PPKF in history that was delivered directly by the President. This is also the first KEM-PPKF for me as Minister of Finance that we will follow up as the basis for preparing the 2027 budget architecture. Fiscal policy is directed to encourage higher economic growth and a prosperous people faster," he explained.
He said that the government also emphasized the importance of synchronization between fiscal, monetary, financial sector policies, and between them so that they run in harmony in encouraging investment, moving the real sector, and creating jobs.
Purbaya said that KEM-PPKF 2027 was also directed to strengthen the effectiveness of social protection programs and community empowerment so that they are more targeted in improving people's welfare.
"In addition, increasing transfers to regions and providing flexibility in managing the Regional Budget to improve the quality of public services as well as equitable development and improving the welfare of ASN in the region," he said.
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