Global Economy 2027 Facing High Uncertainty, Says Purbaya

Finance Minister Purbaya Yudhi Sadewa warned that the global economy is set for considerable uncertainty in 2027 due to a confluence of structural and cyclical risks. Speaking at a parliamentary meeting in Jakarta, he noted that while the world economy is expected to grow, these challenges will constrain its overall performance.

The former Deposit Insurance Corporation chief highlighted that Indonesia's economy remains stable and resilient, with a solid performance in the first half of 2026. Year-on-year, domestic growth reached 5.45 percent, driven by strong domestic consumption, increasing investment, and supportive government policies. Purbaya stressed that fiscal policy and the State Budget are crucial for maintaining macroeconomic stability and prosperity.

The 2027 State Budget Draft will focus on eight priority areas, including food security, energy and water self-sufficiency, education, healthcare, industrial downstreaming, infrastructure, housing, disaster resilience, the grassroots economy, village development, and poverty reduction. The government aims to maintain the health and credibility of the state budget by boosting revenues, improving expenditure efficiency, and implementing innovative financing strategies.

Under macroeconomic assumptions, the 2027 budget projects economic growth of 6.0 percent, an inflation rate of 2.5 percent, and a rupiah exchange rate of 17,500 per US dollar. The poverty rate is expected to decline to 6.0–6.5 percent, with the Gini ratio projected at 0.362–0.367 and open unemployment between 4.30 and 4.87 percent.