Indonesia targets 6.0% GDP growth and a 2.4% fiscal deficit in 2027, supporting Rupiah stability amid global volatility.
Indonesia’s 2027 State Budget assumes a Rupiah exchange rate of Rp17,500 per USD and projects a 2.40% fiscal deficit as a percentage of GDP. The budget targets 6.0% economic growth, driven by strategic public investment and disciplined fiscal management.
The deficit narrows from prior levels, reflecting efforts to balance growth with stability. The 10-year government bond yield is projected at 6.90%, assuming stable domestic liquidity and manageable sovereign risk premiums.
Risks include prolonged high interest rates in advanced economies and sustained USD strength, which could pressure the Rupiah and raise borrowing costs. Financing will rely on a mix of domestic and international bond issuance to maintain market confidence.