Indonesian President Prabowo Subianto announces that Indonesia’s fiscal deficit target for 2027 will be between 1.8% and 2.4% of gross domestic product (GDP). The remarks are made as international and market scrutiny continues around Indonesia’s economic outlook, following earlier actions by credit rating agencies. Moody’s and Fitch have both adjusted their assessments of Indonesia’s credit profile this year by cutting their respective credit rating outlooks.
In addition to the fiscal target, Prabowo also outlines broader economic goals for the period leading up to 2027, including commitments aimed at supporting growth and improving prosperity. Multiple reports say the president links the deficit target to plans for institutional reforms designed to improve the investment climate. Those measures are described as intended to attract investment and increase private-sector participation.
Together, the reporting indicates Prabowo’s government is presenting a medium-term fiscal framework alongside policy steps intended to help sustain economic momentum amid concerns reflected in external credit outlooks.
