Prabowo Targets Indonesian Economic Growth of 6 Percent in 2027

President Prabowo Subianto. (Photo: ANTARA)

JAKARTA - President Prabowo Subianto targets Indonesia's economic growth to reach 6 percent in 2027.

"Economic growth is targeted at 6 percent, higher than the 2026 State Budget of 5.4 percent," he said in the 1st DPR RI Plenary Meeting of the 2026-2027 Session and the presentation of the Draft State Revenue and Expenditure Budget (RAPBN) 2027, Friday, August 14.

In addition to economic growth, the government also set a number of macroeconomic assumptions in the 2027 State Budget, namely inflation is targeted at 2.5 percent, while the yield on the 10-year State Securities (SBN) is estimated at 6.9 percent.

Meanwhile, the exchange rate of the rupiah is projected to be in the range of Rp17,500 per US dollar (USD), the price of Indonesian crude oil or Indonesian Crude Price (ICP) is estimated to reach 75 per barrel of US dollars.

For the oil and gas sector, the government targets an oil lifting of 610 thousand barrels per day. Meanwhile, the gas lifting is pegged at 954 thousand barrels of oil equivalent per day.

Prabowo is optimistic that strengthening economic growth coupled with effective management of the state budget can improve a number of indicators of public welfare.

He said that the poverty rate in 2027 is targeted to fall to 6 percent-6.5 percent, from the 2026 state budget target of 6.5 percent-7.5 percent.

"The open unemployment rate in 2027 is targeted to fall to a range of 4.30 percent to 4.87 percent, down from 4.44 percent to 4.96 percent in 2026," he explained.

The government also targets improvement in income inequality, namely the gini ratio in 2027 is projected to be in the range of 0.362-0.367, lower than the target of 2026 of 0.377-0.380.

Meanwhile, the Human Capital Index is targeted to increase to 0.575 by 2027.

Prabowo emphasized that the achievement of these various targets will be supported by fiscal reforms that are carried out comprehensively and consistently and the government will also optimize state revenues while increasing spending efficiency.

"Leakage of revenue must be minimized, spending efficiency continues. Social protection is encouraged to be more targeted, as well as innovative and sustainable financing continues to be developed," he concluded.