Jakarta ( WNAM MONITORING ): President Prabowo Subianto is targeting economic growth in 2026 to reach 5.4 percent or higher, with inflation targeted to be maintained at a level of 2.5 percent.
He expressed optimism that with good fiscal management, accompanied by effective economic transformation, the economic growth target will be achieved.
“Economic growth in 2026 is targeted to reach 5.4 percent or higher,” he said in his speech on the Draft State Budget (RAPBN) for the 2026 fiscal year and financial notes at the Plenary Session of the House of Representatives (DPR) in Jakarta on Friday.
Apart from that, the President is targeting the interest rate to be around 6.9 percent, while the rupiah’s exchange rate against the dollar is targeted at Rp16,500 per US dollar.
Furthermore, he targeted the open unemployment rate in 2026 to decline to be at around 4.44 percent to 4.96 percent. Meanwhile, the poverty rate is targeted to drop to be in the range of 6.5 percent to 7.5 percent.
The government also seeks to reduce the Gini ratio to a level of 0.377 to 0.38, while the human capital index is targeted to be at 0.57.
In addition, the farmers’ welfare index and formal job creation are targeted to increase.
The President expressed hope that by 2027 or 2028, Indonesia’s state budget will not have a deficit at all.
In the 2026 Draft State Budget, the Indonesian government allocated Rp3,786.5 trillion (approximately US$234.1 billion) for state spending.
The 2026 state revenue is targeted to reach Rp3,147.7 trillion (around US$194.6 billion) while the state budget deficit is projected to reach Rp638.8 trillion (around US$39.49 billion) or 2.48 percent of gross domestic product (GDP).
