Despite a weakening rupiah, Indonesian President Prabowo Subianto stated that Indonesia’s economic growth could reach 5.8 to 6.5% in 2027 through the implementation of appropriate economic strategies and prudent fiscal policies.
Moreover, the Indonesian government has set a target to reduce the poverty rate to between 6.0 and 6.5%, a significant decrease from the previous target of 6.5-7.5%. The open unemployment rate is also expected to fall to between 4.30 and 4.87%, down from the previous target of between 4.44 and 4.96%.
On the other hand, state revenue is targeted at 11.82% to 12.40% of GDP, while the budget deficit will be maintained within 1.80% to 2.40% of GDP. This figure is lower than the actual state budget deficit of 2.92% recorded in 2025.
President Subianto directly presented the macroeconomic framework and fiscal policy principles of the 2027 Draft State Budget (Rancangan Anggaran Pendapatan dan Belanja Negara or RAPBN) to the House of Representatives (Dewan Perwakilan Rakyat Republik Indonesia or DPR RI) during the 19th Plenary Session of the DPR RI for the Fifth Session of the 2025–2026 Session Year on Wednesday, the 20th of May. Subianto became the first President of the Republic of Indonesia to personally present the introduction to the RAPBN before members of the DPR RI.
“With the right economic strategy, prudent and sustainable fiscal policy, I am confident that the Indonesian economy can grow in the range of 5.8 to 6.5% in 2027, heading towards 8% economic growth in 2029,” said Subianto.
The Indonesian Minister of Finance, Purbaya Yudhi Sadewa, responded to the economic growth target of 6.5% by 2027 by stating that the target is both realistic and achievable, with significant potential.
“Right now, this year, we’re pushing for it to approach 6%, so the potential is enormous,” remarked Sadewa.
On the same day, however, reports indicated that the rupiah opened trading at Rp17,730/US$, weakening by 0.20%. This continued the pressure experienced during the previous trading session. On Tuesday, 19 May 2026, the rupiah closed 0.31% weaker at Rp17,695/US$, marking its lowest closing level in history.
Today’s rupiah movement is expected to be heavily influenced by Bank Indonesia’s decision regarding the benchmark interest rate, or BI Rate. This decision is among the most highly anticipated agendas for market participants, particularly amid mounting pressure on the rupiah and domestic financial markets.