Indonesia projects 5.8--6.5 percent economic growth in 2027: Prabowo

Jakarta (ANTARA) - Indonesian President Prabowo Subianto stated that the government is projecting Indonesia's economic growth to be in the range of 5.8 percent to 6.5 percent in 2027.

This growth is expected to be achieved through the implementation of the right economic strategies alongside prudent and sustainable fiscal policies.

"I am confident that Indonesia's economy can grow within the range of 5.8 to 6.5 percent in 2027, heading toward 8 percent economic growth by 2029," he asserted at the Parliament Complex in Jakarta on Wednesday.

The statement was conveyed in his presentation of the key figures for the 2027 Macroeconomic Framework and Fiscal Policy Outlines (KEM PPKF) during a House of Representatives (DPR) plenary session.

The government also emphasized that this growth target must reflect a tangible increase in public welfare, specifically through a reduction in the poverty and unemployment rates.

In line with this, the Indonesian government has set a target to lower the poverty rate to a range of 6.0 to 6.5 percent, marking a significant drop from the previous target of 6.5 to 7.5 percent.

Meanwhile, the open unemployment rate is also projected to fall to between 4.30 and 4.87 percent, down from the earlier target of 4.44 to 4.96 percent.

To support various priority and key programs, state spending in the 2027 state budget is planned to hover between 13.62 and 14.80 percent of Gross Domestic Product (GDP).

Furthermore, state revenue is targeted to reach 11.82 to 12.40 percent of GDP, while the budget deficit will be capped between 1.80 and a maximum of 2.40 percent of GDP.

This figure is lower than the 2025 state budget deficit, which reached 2.92 percent.

President Prabowo has become the first Indonesian president to present KEM PPKF directly to the DPR.

In addition to 451 DPR members, Wednesday's plenary session was also attended by Vice President Gibran Rakabuming Raka and Red and White Cabinet ministers, including Coordinating Minister for Economic Affairs Airlangga Hartarto and Finance Minister Purbaya Yudhi Sadewa.