President Prabowo Outlines Macroeconomic Assumptions for 2027 State Budget

President Prabowo Subianto has laid out the foundational macroeconomic assumptions that will guide Indonesia's 2027 State Budget (RAPBN), signaling the government's economic direction for the coming fiscal year. In a plenary session at the House of Representatives, the President detailed targets for the Rupiah's exchange rate against the US dollar, projecting it to be within the range of Rp 16,800 to Rp 17,500. This figure represents an increase from the Rp 16,500 target set for the 2026 budget, indicating a strategic approach to currency management.

Beyond currency stability, the Prabowo administration has set ambitious goals for economic growth, targeting a range of 5.8 to 6.5 percent. Inflation is expected to be managed within 1.5 to 3.5 percent, while interest rates for 10-year government bonds are projected between 6.5 and 7.3 percent. Furthermore, the budget anticipates significant contributions from the energy sector, with targets for Indonesian crude oil prices between US$70-95 per barrel and oil lifting set at 602,000–615,000 barrels per day. Gas production is also projected to be robust, with targets of 934,000–977,000 barrels per day.

From Indonesia's perspective, these macroeconomic targets are crucial indicators of economic health and stability. The government's focus on maintaining a stable exchange rate, fostering robust economic growth, and managing inflation reflects a commitment to creating a conducive environment for investment and development. While international observers might focus on the specific figures, for Indonesians, these assumptions translate into tangible expectations about job creation, purchasing power, and the overall trajectory of the national economy. The emphasis on strategic fiscal and monetary policies underscores the government's determination to navigate global economic uncertainties while pursuing national development goals.

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Our fiscal and monetary strategies must be strategies that are capable of keeping our exchange rate stable.