Indonesia approves 2027 budget with ambitious growth and welfare targets

On Tuesday, Indonesia's parliament enacted the 2027 State Budget Bill after unanimous support from every party faction. House Speaker Puan Maharani called for the vote, and the budget, presented by Said Abdullah of the House Budget Agency, projects a 6% rise in GDP and keeps inflation at 2.5%. Monetary policy aims to hold the rupiah near 17,500 per US dollar and set the 10-year government bond yield at 6.9%.

Energy targets include crude oil priced at US$75 per barrel, oil output of 612,500 barrels per day and natural gas at 954,000 barrels of oil equivalent per day. Social goals cover unemployment between 4.30-4.87%, poverty at 6-6.5%, extreme poverty under 0.5%, and improvements in human-capital, farmer and fisher welfare indices, job creation of up to 3.49 million, and a 39.57% cut in greenhouse-gas intensity. The budget links these metrics to broader development and environmental mitigation strategies.