Indonesia Targets Up To 6.5 Pct Growth Next Year

JAKARTA, May 20 (Xinhua) -- Indonesian President Prabowo Subianto on Tuesday outlined the country's macroeconomic framework and fiscal policy targets for 2027, projecting economic growth of up to 6.5 percent while pledging to keep the fiscal deficit below 2.4 percent of gross domestic product.

Speaking during a plenary session at the House of Representatives, Prabowo said the government aimed to maintain inflation within a range of 1.5 to 3.5 percent and keep the rupiah exchange rate stable at around 16,800 to 17,500 rupiah per U.S. dollar. Government bond yields are expected to remain in the range of 6.5 to 7.3 percent.

"On the financing side, the 2027 fiscal deficit will be maintained at 1.8 percent to a maximum of 2.4 percent of GDP," he said. "Fiscal and monetary strategies must be able to maintain the stability of our currency against global currencies," he told lawmakers.

In the energy sector, the Indonesian crude oil price assumption for 2027 is projected at 70 to 95 U.S. dollars per barrel. The president added that economic expansion must translate into broader social gains, with the poverty rate targeted to decline to 6 to 6.5 percent and unemployment expected to fall to 4.3 to 4.8 percent by 2027. "Such growth must be reflected in tangible improvements in people's welfare," Prabowo said. 

--NNN-Xinhua