DPR and Government Target Zero Percent Extreme Poverty by 2027

Indonesia's House of Representatives (DPR) and the government have agreed to a target of zero percent extreme poverty by 2027. This ambitious goal was established during discussions on the Macroeconomic Framework and Fiscal Policy Priorities, which serve as the basis for the 2027 State Budget draft.

During the same period, the national poverty rate is projected to fall to between 6 percent and 6.5 percent. Mukhamad Misbakhun, Chairman of Commission XI of the DPR, stated that this target was a key agreement reached in discussions with the government. "The poverty rate will be in the range of 6.0 percent to 6.5 percent. Extreme poverty is targeted at 0 percent," Misbakhun announced during a working meeting.

Beyond poverty reduction, the DPR and government also set economic growth targets for 2027 between 5.8 percent and 6.5 percent. The open unemployment rate is expected to be between 4.30 percent and 4.87 percent. The rupiah exchange rate is set at Rp16,800 to Rp17,500 per U.S. dollar, with the 10-year government bond yield targeted between 6.5 percent and 7.3 percent.

In terms of fiscal policy, state revenue is targeted at 12.01 percent to 12.40 percent of GDP, while the state budget deficit for 2027 is capped at 1.8 percent to 2.4 percent of GDP. Minister of Finance Purbaya Yudhi Sadewa affirmed the government's commitment to overseeing priority programs to achieve these targets, viewing the 2027 economic growth as a step towards the 8 percent growth goal set for 2029.

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The poverty rate will be in the range of 6.0 percent to 6.5 percent. Extreme poverty is targeted at 0 percent.