Prabowo Presents 2027 Budget Today, Economic Growth Targeted at 6.5 Percent

President Prabowo Subianto (Presidential Media Team)

JAKARTA - President Prabowo Subianto is scheduled to deliver a state of the nation address as well as present the financial note and the Draft State Budget (RAPBN) 2027 at the Nusantara Building, the DPR/MPR complex, Senayan, Jakarta, Friday, August 14. The agenda is part of the series of events to commemorate the 81st anniversary of the Republic of Indonesia.

The president's speech today is divided into two sessions. In the morning, Prabowo is scheduled to deliver a state of the nation address at the annual MPR session and a joint session of the DPR-DPD.

In the afternoon, Prabowo will deliver a speech on the 2027 State Budget as well as a financial note at the DPR plenary session.

Before the 2027 State Budget was presented by the president, the government and the DPR Budget Agency (Banggar) had agreed on a number of initial references for preparing next year's budget. The agreement includes basic assumptions of macroeconomics to the development target for 2027.

In the preliminary discussion, the government and the DPR agreed on the economic growth target for 2027 in the range of 5.8 percent to 6.5 percent. The inflation rate is set in the range of 1.5 percent to 3.5 percent.

The exchange rate of the rupiah is assumed to be in the range of Rp. 16,800 to Rp. 17,500 per US dollar (USD). The interest rate for the 10-year government securities (SBN) is set at 6.5%-7.3 percent.

The energy sector targets the Indonesian crude price (ICP) to be in the range of US$ 70 to US$ 95 per barrel. The target for lifting petroleum is pegged at 605,000 to 620,000 barrels per day.

The target for lifting natural gas is set at 951,000 to 990,000 barrels of oil equivalent per day.

In addition to macro assumptions, the government and the DPR have also agreed on a number of development targets for 2027. The poverty rate is targeted to be in the range of 6-6.5 percent, while extreme poverty is targeted to reach 0 percent.

The open unemployment rate is pegged at a range of 4.3 percent - 4.87 percent. The government also targets a proportion of formal job creation of 40.81 percent.

The target gross national income (GNI) per capita is in the range of US$ 5,600-US$ 5,840. The Gini ratio, which is one of the indicators of inequality, is pegged at 0.362-0.367.

Other development targets include a human capital index of 0.575, a farmer welfare index of 0.8038, and an environmental quality index of 76.84.

The government and the DPR also set a target of reducing the intensity of greenhouse gas emissions by 39.57 percent by 2027.

All of these figures are the results of preliminary discussions of the 2027 State Budget between the government and the Banggar DPR. The results of the discussion were presented in the DPR plenary session on Thursday (2/7/2026) and became the initial reference for the preparation of the 2027 State Budget.

Deputy Chairman of the Banggar DPR Wihadi Wijanto previously emphasized that the target for economic growth must still be directed to improve people's welfare.

"High economic growth will lose its meaning if it is not in line with the target of people's welfare. Thus, improving people's welfare is the main goal of all national development efforts," said Wihadi.

Macroeconomic assumptions in the 2027 State Budget that have been agreed upon:

1. Economic growth 5.8 percent -6.5 percent. 2. Inflation rate 1.5 percent -3.5 percent. 3. Rupiah exchange rate Rp16,800-Rp 17,500 per US$4. SBN interest rate 10 years 6.5 percent -7.3 percent. 5. Indonesian crude oil price US$ 70-US$ 95 per barrel 6. Lifting of petroleum: 605,000-620,000 barrels per day 7. Lifting of natural gas: 951,000-990,000 barrels of oil equivalent per day

The target targets for development in 2027 that have been agreed upon:

1. Poverty rate 6.0 percent - 6.5 percent. 2. Extreme poverty rate 0 percent. 3. Gini ratio 0.362-0.3674. Open unemployment rate 4.3 percent - 4.87 percent. 5. Human capital index 0.5756. Farmer welfare index 0.80387. Proportion of formal job creation 40.81 percent. 8. GNI per capita US$ 5,600-US$ 5,8409. Environmental quality index 76.8410. Reduction in greenhouse gas emission intensity 39.57 percent.