Jakarta: The Indonesian government is targeting Indonesia's economic growth to reach 6% year-on-year in 2027, according to the 2027 Draft State Budget (RAPBN) presented on Friday.

According to Emirates News Agency, President Prabowo Subianto stated that the target is higher than the 5.4% economic growth target set in the 2026 State Budget. "Economic growth in 2027 is targeted to reach 6%, higher than the 2026 State Budget target of 5.4%," he said during his Annual Budget Speech on the 2027 Draft State Budget and its Financial Note in Jakarta.

In 2027, the government is targeting state spending of Rp4,097.2 trillion (US$222.8 billion), which is an increase from Rp3,842.7 trillion (US$209 billion) in the 2026 State Budget. Meanwhile, state revenue is projected to reach Rp3,426 trillion (US$186 billion), up from Rp3,153.6 trillion (US$171.5 billion) in the previous year.

State financing is planned at Rp671.2 trillion (US$36.5 billion), with a budget deficit of 2.40% of gross domestic product (GDP), reduced from Rp689.1 trillion (US$37.4 billion) in the 2026 State Budget, which had a deficit target of 2.68% of GDP.

Inflation in 2027 is expected to remain around 2.5%, while the interest rate on 10-year government securities (SBN) is estimated at 6.9%. The rupiah exchange rate is projected to be approximately Rp17,500 per US dollar.

Additionally, the Indonesian crude oil price is estimated 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.

Poverty is targeted to decline to 6.0-6.5% in 2027, compared with the 2026 State Budget target of 6.5-7.5%. The decline is expected to be supported by stronger economic growth and effective budget management. The open unemployment rate is targeted to fall to 4.30-4.87% in 2027, from 4.44-4.96% in 2026.