Prabowo vows to keep 2027 budget deficit below 2.5 pct of GDP

Jakarta (ANTARA) - President Prabowo Subianto pledged to keep Indonesia's 2027 state budget deficit below 2.5 percent of gross domestic product (GDP).

"On financing, we will strive to keep our 2027 APBN (State Budget) deficit within the range of 1.80 to 2.40 percent of GDP. We will continue efforts to reduce the deficit further," Prabowo said during a House of Representatives (DPR) plenary session in Jakarta on Wednesday.

The president also projected state revenue in the 2027 draft budget at between 11.82 percent and 12.40 percent of GDP.

"To support various priority programs, state spending is projected to range from 13.62 percent to 14.80 percent of GDP," he added.

Prabowo described the State Budget as more than a state financial document, calling it a tool to protect the people, strengthen the national economy, improve public welfare, and guide the country's future direction.

"With that understanding, we are designing the APBN as a shared commitment to realizing the ideals mandated by our constitution," he said.

Prabowo attended the plenary session to directly present the government's Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2027 fiscal year before lawmakers.

He became the first Indonesian president to directly present the preliminary fiscal framework before the House.

He delivered the address before House Speaker Puan Maharani, 451 lawmakers, Vice President Gibran Rakabuming Raka, cabinet ministers, and state officials.

Those in attendance included Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, Foreign Minister Sugiono, Bank Indonesia Governor Perry Warjiyo, and Financial Services Authority (OJK) Chair Friderica Widyasari Dewi.