Prabowo Targets 6% Economic Growth as Government Sets Rp4,097 Trillion Budget

JAKARTA, Jakartaweekly.com—President Prabowo Subianto said the government is targeting economic growth of 6% in 2027, higher than the 5.4% target set in the 2026 State Budget (APBN). Meanwhile, inflation is expected to be maintained at 2.5%.

To support the economic growth target, the government is planning state expenditure of Rp4,097.2 trillion under the 2027 Draft State Budget (RAPBN), up from Rp3,842.7 trillion allocated in the 2026 State Budget.

Meanwhile, state revenue in the 2027 Draft State Budget is estimated at Rp3,426 trillion, up from Rp3,153.6 trillion in the 2026 State Budget.

State financing is planned at Rp671.2 trillion, with the fiscal deficit targeted at 2.4% of gross domestic product (GDP). The deficit is lower than the Rp689.1 trillion deficit projected in the 2026 State Budget, equivalent to 2.68% of GDP.

“We are focusing the 2027 Draft State Budget on eight National Priority Work Programs (PKPN),” Prabowo said at the DPR RI building on Friday, August 14, 2026.

The eight National Priority Work Programs include food sovereignty, energy and water self-sufficiency, education, healthcare, downstreaming and industrialization, infrastructure, housing and disaster resilience, strengthening the people’s economy and village development, as well as poverty reduction.

Furthermore, the government estimates the 10-year government bond (SBN) yield at 6.9%, while the rupiah exchange rate is projected at around Rp17,500 per US dollar.

Indonesia Crude Price (ICP) is projected 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 (BOEPD).

“With stronger growth and an effective state budget, poverty is expected to decline in 2027,” Prabowo said.

The government is targeting the poverty rate to decline to 6%-6.5%, from the 6.5%-7.5% target set in the 2026 State Budget.

The open unemployment rate is targeted to decline to 4.3%-4.87% in 2027, compared with the 4.44%-4.96% target in the 2026 State Budget.

The Gini ratio is also targeted to improve to 0.362-0.367 in 2027, compared with the 0.377-0.380 target this year. Meanwhile, the Human Capital Index is targeted to increase to 0.575.

“These figures will be maintained through holistic and consistent fiscal reforms. State revenue will be optimized further, revenue leakages must be minimized, and spending efficiency will continue,” Prabowo explained.

Economic Census

Prabowo also highlighted the Economic Census currently being conducted by the government. He explained that the census is intended to update the methodology used to measure the country’s economic activity.

“The data collected by Statistics Indonesia (BPS) through the Economic Census will not be used to pursue or assess reported personal wealth or income. The data will be used to enable us to formulate policies and budgets more accurately,” Prabowo said.

Going forward, Prabowo said the government would maintain fiscal discipline by expanding consolidated procurement across regional governments.

Data from the Government Procurement Policy Agency (LKPP) showed that consolidated procurement generated efficiency savings of 20.86% in 2025 and 25.43% in 2026.

Prabowo claimed that if consolidated procurement were expanded, efficiency could reach 30% of total procurement spending, equivalent to approximately Rp360 trillion out of Rp1,200 trillion.

Indonesia’s 2027 Draft State Budget Assumptions