May 21, 2026
JAKARTA – President Prabowo Subianto has revealed that the economic growth projection in next year’s state budget would be set at 5.8 to 6.5 percent, which he said keeps Indonesia on track to achieve its ambitious 8 percent target by 2029.
In a speech outlining the Macroeconomic Framework and Fiscal Policy Points (KEM-PPKF), Prabowo told the House of Representatives on Wednesday that the deficit for 2027 was set at 1.8 to 2.4 percent of gross domestic product (GDP), below the legal cap of 3 percent.
“We will keep striving to press down the deficit,” Prabowo said.
The rupiah is projected to trade between 16,800 and 17,500 per dollar next year, despite currently being around 17,700 per dollar this week
This marks the first time a president has delivered the KEM-PPKF speech, the initial document in the state budget formulation process that outlines macroeconomic projections. The speech has traditionally been delivered by the finance minister.
Prabowo said the country was facing “geopolitical challenges” that created uncertainties with a “very big impact on our livelihoods”, hence his decision to deliver the speech himself.