Post by : Shakul

President Prabowo Subianto announced that Indonesia is targeting economic growth between 5.8 percent and 6.5 percent in 2027 as the country pushes toward its long-term goal of achieving 8 percent growth by 2029. The announcement was made during a speech at the House of Representatives in Jakarta while presenting the government’s Macroeconomic Framework and Fiscal Policy Points for the upcoming state budget.

Prabowo stated that the government remains focused on maintaining strong economic stability despite growing geopolitical uncertainty and pressure on global markets. He explained that Indonesia’s fiscal deficit for 2027 is projected to remain between 1.8 percent and 2.4 percent of gross domestic product, safely below the country’s legal limit of 3 percent. According to him, the administration will continue efforts to reduce the deficit while balancing development spending and economic expansion.

The President also projected the Indonesian rupiah to trade between 16,800 and 17,500 against the US dollar next year. The currency has recently remained under pressure due to global economic uncertainty, rising energy prices, and fluctuations in international financial markets. Even with these challenges, the government believes Indonesia’s economic fundamentals remain strong enough to support growth targets.

This year marked the first time an Indonesian president personally delivered the KEM-PPKF speech, a role traditionally handled by the finance minister. Prabowo said he chose to address parliament directly because the world economy is facing increasingly difficult conditions that could significantly impact people’s livelihoods and national stability.

Government officials believe strategic investments, infrastructure expansion, industrial growth, and digital transformation will become key drivers of economic progress over the next few years. The administration is also expected to continue focusing on food security, energy resilience, manufacturing, and downstream industries to strengthen Indonesia’s economic position in Southeast Asia.

Economists say the growth target is ambitious but possible if domestic demand remains stable and global economic conditions improve gradually. Indonesia has continued attracting foreign investment in sectors such as mining, renewable energy, electric vehicles, and technology despite ongoing global uncertainty.

Analysts also noted that maintaining a controlled fiscal deficit while targeting higher growth will require careful policy management. Rising commodity prices, geopolitical tensions, and currency volatility remain major risks that could affect Indonesia’s economic outlook in the coming years. However, the government appears confident that its fiscal strategy and long-term development plans can keep the economy on a stable growth path.

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