TEMPO.CO, Jakarta - The Indonesian government and lawmakers have reached an agreement on the 2027 fiscal framework, targeting higher growth and smaller State Budget deficit.
Chair of the House of Representatives' Commission XI Mukhamad Misbakhun outlined that the government targeted 5.8-6.5 percent economic growth for 2027, with the rupiah exchange rate in the range of 16,800-17,500.
These assumptions for the rupiah exchange rate and economic growth are higher compared to this year's targets.
Meanwhile, the exact target for rupiah exchange rate will be determined at a later date after the House of Representatives receives the first semester report of the State Budget. "We will only then find the single parameter," said Misbakhun while reading the points of agreement during the meeting at the House of Representatives building on Thursday, June 11, 2026.
Next year's inflation rate is expected to remain controlled in the range of 1.5 to 3.5 percent, while the target for the 10-year Government Bonds (SBN) interest rate in 2027 is in the range of 6.5 to 7.3 percent.
The government is targeting to reduce the rate of open unemployment to a level of 4.30 to 4.87 percent and keep the poverty rate in the range of 6 to 6.5 percent.
Meanwhile, Indonesia is aiming to reach zero percent on the extreme poverty rate.
The Gini ratio index is agreed at 0.362-0.367 and the Human Development Index at 0.575. Gross National Income (GNI) per capita is set at US$ 5,800-5,840. The proportion of formal job creation is set at 40.81 percent and the index of environmental quality at 76.84.
Fiscally, the budget deficit for 2027 is targeted at 1.80 to 2.40 percent of the GDP, or lower than this year's range of 2.68 percent. In line with the lower deficit, the ratio of the country's revenue to GDP for next year aimed to be increased to the range of 12.01 to 12.40 percent.
Representing the government, Finance Minister Purbaya Yudhi Sadewa stated full agreement with all the key terms outlined in the 2027 Macroeconomic and Fiscal Policy Framework.
"The government is consistent in maintaining fiscal discipline by controlling the deficit and debt within safe limits, namely a deficit below 3 percent of the GDP and debt below 60 percent of the GDP," said Purbaya.
Read: Indonesia Raises Rp386 Trillion in New Debt by May
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