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Indonesia targets 6 percent economic growth in 2027, Prabowo says | Caixin Society
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Indonesia targets 6 percent economic growth in 2027, Prabowo says

I am confident that our economic growth can reach 6 percent by the end of this year,Jakarta (ANTARA) – The government is targeting Indonesia's economic growth to reach 6 percent year-on-year in 2027, according to the 2027 Draft State Budget (RAPBN) presented on Friday.According to President Prabowo Subianto, the target is higher than the 5.4-percent economic growth target set in the 2026 State Budget.”Economic growth in 2027 is targeted to reach 6 percent, higher than the 2026 State Budget target of 5.4 percent,” he said during his Annual Budget Speech on the 2027 Draft State Budget and its Financial Note in Jakarta.In 2027, the government is targeting state spending of Rp4,097.2 trillion (US$222.8 billion), up from Rp3,842.7 trillion (US$209 billion) in the 2026 State Budget.Meanwhile, state revenue is projected to reach Rp3,426 trillion (US$186 billion), up from Rp3,153.6 trillion (US$171.5 billion) in the 2026 State Budget.State financing is planned at Rp671.2 trillion (US$36.5 billion), with a budget deficit of 2.40 percent of gross domestic product (GDP), down from Rp689.1 trillion (US$37.4 billion) planned in the 2026 State Budget, which had a deficit target of 2.68 percent of GDP.Inflation in 2027 is expected to remain at around 2.5 percent, while the interest rate on 10-year government securities (SBN) is estimated at 6.9 percent. The rupiah exchange rate is projected at around Rp17,500 per US dollar.Meanwhile, the Indonesian crude oil price is estimated at US$75 per barrel, with oil lifting targeted at 610,000 barrels per day and gas lifting at 954,000 barrels of oil equivalent per day.Poverty is targeted to decline to 6.0–6.5 percent in 2027, compared with the 2026 State Budget target of 6.5–7.5 percent. The decline is expected to be supported by stronger economic growth and effective budget management.The open unemployment rate is targeted to fall to 4.30–4.87 percent in 2027, from 4.44–4.96 percent in 2026.The Gini ratio is expected to improve to 0.362–0.367, from this year's target of 0.377–0.380, while the human capital index is targeted to increase to 0.575. Prabowo said Indonesia's economy grew 5.45 percent year-on-year (yoy) in the first half of 2026.Previously, at the 2026 Annual Session of the People's Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and Regional Representatives Council (DPD) on Friday morning, the head of state expressed confidence that economic growth could reach 6 percent by the end of the year, supported by sound and rational policies.”With appropriate, rational policies that utilize common sense, I am confident that our economic growth can reach 6 percent by the end of this year,” he said.