JAKARTA. The Indonesian government and the House of Representatives (DPR) have agreed to set the state revenue target at 12.01%–12.4% of Gross Domestic Product (GDP) under the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF).
The agreement was reached jointly by the Minister of Finance, the Minister of National Development Planning (PPN)/Head of Bappenas, Bank Indonesia, and the Financial Services Authority (OJK) on Thursday (June 11).
For reference, the KEM-PPKF serves as the foundation for the government in preparing the 2027 State Budget (RAPBN).
In addition to the revenue target, the government and the DPR also agreed to set the 2027 state budget (APBN) deficit at 1.8%–2.4% of GDP.
Regarding the macroeconomic assumptions, House Commission XI and the government agreed to target economic growth in the range of 5.8%–6.5%, while inflation is projected at 1.5%–3.5%.
Meanwhile, the rupiah exchange rate is projected at IDR 16,800–IDR 17,500 per US dollar, while the 10-year government bond (SBN) yield is expected to range between 6.5% and 7.3%.
On the occasion, Minister of Finance Purbaya Yudhi Sadewa stated that the agreed KEM-PPKF was designed to support a more effective fiscal policy direction.
He expressed hope that the policy framework would accelerate economic growth and improve public welfare.
Meanwhile, House Commission XI Chairman Muhammad Misbakhun said that achieving the targeted economic growth would require appropriate policies on the expenditure, production, and regional development fronts. (KEN)
