Indonesian Parliament Unanimously Passes 2027 State Budget Bill
The Indonesian parliament passed the 2027 State Budget Bill, setting a 6 percent economic growth target and establishing 14 public welfare and environmental indicators.
The House of Representatives of the Republic of Indonesia unanimously passed the 2027 State Budget Bill into law on September 29, 2026. Presided over by House Speaker Puan Maharani, the legislation establishes a 6 percent economic growth target and aims to keep inflation at 2.5 percent to support household consumption.
To maintain stability across the fiscal and real sectors, the government and Bank Indonesia intend to stabilize the rupiah exchange rate at approximately 17,500 per US dollar. Other macroeconomic assumptions include a 10-year government securities interest rate of 6.9 percent and Indonesian crude oil priced at US$75 per barrel.
The budget introduces 14 specific indicators for public welfare and environmental quality. These targets include reducing the poverty rate to 6-6.5 percent, eliminating extreme poverty to 0-0.5 percent, and creating between 2.57 and 3.49 million new jobs. Additionally, the administration targets a human capital index of 0.575 and a 39.57 percent reduction in greenhouse gas emission intensity.
