What fiscal deficit target range did President Prabowo announce for Indonesia in 2027, and how does it compare to the current year's outlook?

President Prabowo announced a 2027 fiscal deficit target range of 1.8% to 2.4% of GDP, which is sharply lower than the finance ministry's April 2024 outlook of 2.9% of GDP for this year, a figure that already incorporates the impacts of the Middle East conflict.

What are Prabowo's stated 2027 targets for inflation, economic growth, and the rupiah exchange rate, and what broader policy emphasis did he highlight in his parliamentary address?

Prabowo set the 2027 inflation target at 1.5% to 3.5%, economic growth at 5.8% to 6.5%, and the average rupiah exchange rate at 16,800 to 17,500 per US dollar; he also emphasized in his rare parliamentary address that Indonesia's natural resources — including nickel, palm oil, tin, and coal — must be properly managed to ensure welfare for all 280 million Indonesians, stating, 'the earth, water, and all the resources within must be enjoyed by all Indonesians.'

Indonesia's Prabowo Announces 2027 Fiscal Deficit Target of 1.8% to 2.4% of GDP

May 19, 2026

Indonesian President Prabowo Subianto set a 2027 fiscal deficit target of 1.8% to 2.4% of GDP aiming for 6.5% growth. The announcement included plans to establish a body managing key commodities like nickel and palm oil, impacting market sentiment and currency values.

reuters

2026-05-19

Indonesia's Prabowo Announces 2027 Fiscal Deficit Target of 1.8% to 2.4% of GDP

2026-05-20

Prabowo’s Biggest Crackdown on Tycoons Shocked His Own Officials

2026-06-05

Indonesia Faces Crisis of Confidence as Markets Decode Prabowo

Indonesia's Prabowo Announces 2027 Fiscal Deficit Target of 1.8% to 2.4% of GDP

FAQ