Indonesia targets 6.5 percent poverty rate by 2027

hartono · Sep 1, 2026

Indonesia targets 6.5 percent poverty rate by 2027

Finance Minister Purbaya Yudhi Sadewa speaks to reporters following a working meeting with Commission XI of the House of Representatives (DPR RI) in Jakarta on Tuesday (September 1, 2026). (ANTARA/Bayu Saputra)

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa unveiled the government’s strategy targeting a sharp drop in the national poverty rate to between 6.0 and 6.5 percent by 2027, alongside an ambitious economic growth target of 6.0 percent.

Presenting the framework for the 2027 Draft State Budget during a working meeting with Commission XI of the House of Representatives (DPR RI) on Tuesday, Purbaya emphasized that strong macroeconomic stability alongside targeted fiscal measures will serve as key catalysts to accelerate poverty alleviation across the country.

"Solid economic stability and growth, supported by effective fiscal policy, are the primary drivers to accelerate poverty reduction,” Purbaya told lawmakers.

The proposed 2027 budget projects state revenue at Rp3,496 trillion (approximately US$199.7 billion) against state expenditure of Rp4,097.29 trillion (US$234.1 billion), maintaining the fiscal deficit at a managed 2.40 percent of Gross Domestic Product (GDP).

In addition to poverty alleviation, the government set the open unemployment rate target between 4.30 and 4.87 percent for 2027. The Gini ratio measuring income inequality is targeted at 0.362–0.367, while the Human Capital Index is targeted to reach 0.575.

The macroeconomic assumptions for the 2027 budget include an inflation rate maintained at 2.5 percent, a 10-year Government Securities (SBN) interest rate of 6.9 percent, and a rupiah exchange rate estimated at Rp17,500 per US dollar.

In the energy sector, the Indonesian Crude Price (ICP) is benchmarked at US$75 per barrel, with domestic oil lifting targeted at 612,500 barrels per day and gas lifting set at 954,000 barrels of oil equivalent per day.

Purbaya noted that the 2027 targets build upon positive momentum from previous years, pointing to a steady decline in unemployment from 4.91 percent in August 2024 to 4.85 percent in August 2025, alongside a poverty reduction from 8.57 percent to 8.25 percent over the same period.