This target, outlined in the 2026 Macroeconomic Framework and Fiscal Policy Principles (KEM & PPKF), is higher than this year’s goal of 5.2 percent.
"This targeted economic growth rate will serve as a strong foundation for the nation to achieve our broader goal of up to 8 percent growth in the coming years," the minister remarked during the 18th Plenary Session of the House of Representatives (DPR) in Jakarta on Tuesday.
To achieve this target, she affirmed that the government will continue efforts to maintain the public's purchasing power, reform the economic structure, advance natural resource downstreaming, improve the investment climate, and enhance the quality of human resources.
"Fiscal policies in 2026 will remain focused on effectively supporting strategies to accelerate national economic growth, improve people's living standards, and reduce poverty," she emphasized.
Indrawati also informed legislators that the rupiah is projected to trade between Rp16,500 and Rp16,900 per US dollar in 2026, with national inflation targeted to range between 1.5 and 3.5 percent.
Considering ongoing geopolitical tensions and the global economic slowdown, the government projects Indonesian crude oil prices to range between US$60 and US$80 per barrel, with daily oil production expected to reach up to 605 thousand barrels.
Regarding welfare indicators, the minister highlighted that the open unemployment rate is projected to fall to as low as 4.44 percent, an improvement from this year's target of 5.0-4.5 percent.
She stated that the government also aims to reduce the poverty rate to between 7.5 and 6.5 percent and eliminate extreme poverty.
Additionally, the Gini ratio is targeted at between 0.377 and 0.380, while the Human Capital Index is expected to reach a score of 0.57.
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Translator: Imamatul S, Tegar Nurfitra
Editor: Primayanti
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