"Our fiscal and monetary strategies must be capable of maintaining exchange rate stability against global currencies," he said while presenting the government's Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) in Jakarta on Wednesday.
The target was set amid pressure on the rupiah, which weakened to a record low of Rp17,706 per US dollar in mid-May 2026.
Prabowo said the government would maintain inflation within a range of 1.5-3.5 percent to support purchasing power and exchange rate stability.
The government also targets 10-year government securities yields at 6.5-7.3 percent.
The government projects the 2027 state budget deficit at 1.80-2.40 percent of gross domestic product (GDP), lower than the 2.92 percent recorded in 2025.
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State spending is projected at 13.62-14.80 percent of GDP, while state revenue is targeted at 11.82-12.40 percent of GDP.
The government expects economic growth to reach 5.8-6.5 percent in 2027 as part of efforts to achieve 8 percent growth by 2029.
Fiscal assumptions for 2027 also include Indonesian crude oil prices of US$70-95 per barrel, oil lifting of 602,000-615,000 barrels per day, and gas lifting of 934,000-977,000 barrels of oil equivalent per day.
Prabowo said the targets were aimed at reducing the poverty rate to 6.0-6.5 percent and lowering open unemployment to 4.30-4.87 percent.
He became the first Indonesian president to directly present the preliminary state budget framework before lawmakers during a plenary session of the House of Representatives (DPR).
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Translator: Aditya Ramadhan, Tegar Nurfitra
Editor: Anton Santoso
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