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TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto said the government projects the country’s economy to grow between 5.8 percent and 6.5 percent in 2027, supported by economic strategy and fiscal policy measures outlined in the government’s macroeconomic framework.
“With the appropriate economic strategy and prudent, sustainable fiscal policies, Indonesia’s economy is projected to grow within the range of 5.8 percent to 6.5 percent in 2027, toward the target of 8 percent economic growth by 2029,” Prabowo said during his presentation of the government’s Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2027 state budget at the parliamentary complex in Jakarta on Wednesday.
The government said the growth target is expected to be accompanied by improvements in social welfare indicators, including reductions in poverty and unemployment.
Under the framework, the poverty rate is targeted to decline to between 6 percent and 6.5 percent, lower than the previous target range of 6.5 percent to 7.5 percent.
Meanwhile, the open unemployment rate is projected to fall to between 4.30 percent and 4.87 percent, compared with the previous target range of 4.44 percent to 4.96 percent.
To support priority programs and government spending plans, state expenditure in the 2027 budget is projected to range from 13.62 percent to 14.80 percent of gross domestic product (GDP).
State revenue is targeted at between 11.82 percent and 12.40 percent of GDP, while the fiscal deficit is projected to remain within 1.80 percent to 2.40 percent of GDP. The projected deficit is lower than the 2025 budget deficit realization of 2.92 percent.
Prabowo personally delivered the government’s macroeconomic framework and fiscal policy direction for the 2027 draft state budget during the 19th plenary session of the House of Representatives (DPR) for the 2025-2026 legislative year.
The presentation marked the first time an Indonesian president has directly presented the preliminary state budget framework, including macroeconomic assumptions and fiscal policy priorities, before Parliament.
The plenary session was attended by 451 lawmakers, allowing House Speaker Puan Maharani to declare that quorum requirements had been met.
Prabowo was accompanied by Vice President Gibran Rakabuming Raka and several cabinet members, including Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, Foreign Minister Sugiono, Energy and Mineral Resources Minister Bahlil Lahadalia, Agriculture Minister Andi Amran Sulaiman, and Bank Indonesia Governor Perry Warjiyo.
The plenary session discussed three main agendas: the government’s presentation of the 2027 macroeconomic framework and fiscal policy principles; a legislative review regarding revisions to the 2026 National Legislation Program priority bills; and parliamentary faction views on a proposed amendment to Law No. 2/2002 on the Indonesian National Police.
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