Indonesia Targets 3.49 Million Job Creations in 2027

The Indonesian government has set ambitious targets for job creation, poverty reduction, and economic growth in its 2027 State Budget. During a meeting with key stakeholders, the House of Representatives (DPR) chair Mukhamad Misbakhun announced a target range of 2.57 million to 3.59 million new job opportunities by 2027. This goal represents a significant increase from previous years and is part of the development goals and indicators for the upcoming year.

In addition to job creation, the government and DPR agreed that formal jobs should make up 40.81% of the total job creation. The target also includes reducing the poverty rate to between 6.0-6.5% and the extreme poverty rate to 0-0.5%. The Gini ratio index, a measure of income inequality, is set to range from 0.360 to 0.365, slightly lower than the financial notes of the 2027 State Budget.

Other key targets include an open unemployment rate of 4.30-4.87%, a human capital index of 0.575, and a farmers' welfare index exchange value of 126-128. The government aims for the gross national income (GNI) per capita to reach US$5,800-5,840, or Rp98.54-99.22 million in rupiah. Finally, the environmental quality index is targeted to reach 76.84.

These macro assumptions for Indonesia's 2027 State Budget include an expected economic growth rate of 6.0%, an inflation rate of 2.5%, an exchange rate of Rp17,500/US dollar, and a 10-year SBN bond yield of 6.9%.