Bambang Ismoyo, Jakarta – Finance Minister Purbaya Yudhi Sadewa said President Prabowo Subianto's ambitious 2027 economic growth target of 5.8% to 6.5% remains achievable despite mounting global uncertainty and persistent pressure on the rupiah, as the government bets on stronger private-sector activity to drive expansion.

Prabowo announced the target on Wednesday during the presentation of the government's 2027 Macroeconomic Framework and Fiscal Policy Guidelines (KEM-PPKF) at the Parliament complex in Jakarta. The target forms part of the administration's broader roadmap to achieve 8% economic growth by 2029.

Purbaya said the government is already pushing for growth close to 6% this year, which he believes provides a strong foundation for next year's higher target.

"Even this year we are pushing growth closer to 6%. So the opportunity is very large. I hope next year the private-sector engines will be running much better," Purbaya said at the Parliament complex on Wednesday.

The government's growth optimism comes as Indonesia continues to face external headwinds, including global market volatility and pressure on the rupiah, which recently weakened beyond Rp 17,000 per US dollar.

Addressing concerns over whether the target is too aggressive under current conditions, Purbaya insisted the government's assumptions had been carefully calculated using various economic indicators.

"That would only happen if I stayed silent and let conditions remain at current levels," he said.

Despite targeting faster economic expansion, Prabowo said the government would continue gradually narrowing the fiscal deficit.

The 2027 state budget deficit is projected at 1.8% to 2.4% of gross domestic product.

"From the financing side, we will maintain the 2027 state budget deficit within the range of 1.8% to a maximum of 2.4% of GDP, and we will continue striving to reduce and narrow this deficit," Prabowo said.

Source: https://jakartaglobe.id/business/government-bets-on-private-sector-to-hit-65-growth-in-202