Prabowo Targets 2027 Fiscal Deficit of 1.8% to 2.4% of GDP
President Prabowo Subianto announced a 2027 fiscal deficit target range of 1.8% to 2.4% of GDP alongside an ambitious economic growth goal of up to 6.5%. The plan includes new commodity management strategies and an average rupiah exchange rate target of 16,800 to 17,500 per dollar for the year.
President Prabowo Subianto announced a 2027 fiscal deficit target of 1.8% to 2.4% of GDP for Indonesia during a parliamentary address on May 20. The target is lower than the finance ministry's 2.9% deficit outlook for 2024, reported in April and accounting for Middle East conflict impacts. Investors are weighing these fiscal constraints against Prabowo's 6.5% economic growth goal.
### Fiscal Discipline Meets Growth Ambitions Prabowo set a 2027 economic growth target between 5.8% and 6.5%, supported by state expenditure of 13.62% to 14.80% of GDP. Revenue is projected to reach 11.82% to 12.40% of GDP during the same period. The President also established a 2027 inflation target range of 1.5% to 3.5%.
