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Indonesia targets 6.5 percent poverty rate by 2027
ID🏛️ PoliticsCenter9/1/2026

Indonesia targets 6.5 percent poverty rate by 2027

Indonesia's Finance Minister Purbaya Yudhi Sadewa announced the government's plan to reduce the national poverty rate to between 6.0 and 6.5 percent by 2027, along with an economic growth target of 6.0 percent. This announcement was made during a meeting with Commission XI of the House of Representatives regarding the 2027 Draft State Budget. The proposed budget outlines state revenue and expenditure figures, aiming to maintain a controlled fiscal deficit. Additional goals include reducing the open unemployment rate to between 4.30 and 4.87 percent, lowering the Gini coefficient to measure income inequality, and improving the Human Capital Index. The government has outlined macroeconomic projections such as inflation rates, interest rates, and currency exchange rates. These targets follow a trend of declining poverty and unemployment rates observed in recent years.

Indonesia aims to slash its national poverty rate to between 6.0 and 6.5 percent by 2027, according to Finance Minister Purbaya Yudhi Sadewa, who outlined the government’s strategy during a meeting with members of the House of Representatives' Commission XI. The plan includes an economic growth target of 6.0 percent annually, alongside specific goals for reducing unemployment, narrowing income inequality, and enhancing human capital. These ambitions were presented as part of the 2027 Draft State Budget, which seeks to balance fiscal responsibility with developmental objectives. The proposed 2027 budget outlines state revenue projections of Rp3,496 trillion (approximately US$199.7 billion) and state expenditure of Rp4,097.29 trillion (US$234.1 billion). This results in a fiscal deficit of 2.40 percent of GDP, a figure deemed manageable and consistent with broader macroeconomic stability. The government plans to maintain an inflation rate of 2.5 percent, keep the 10-year Government Securities (SBN) interest rate at 6.9 percent, and stabilize the rupiah at approximately Rp17,500 per US dollar. In the energy sector, the Indonesian Crude Price (ICP) is benchmarked at US$75 per barrel, with domestic oil production targeted at 612,500 barrels per day and gas production at 954,000 barrels of oil equivalent per day. Deputy Finance Minister Suahasil Nazara emphasized the need for improved efficiency in government spending while maintaining focus on critical areas such as social protection, government operations, personnel costs, and funding for regional administrations. According to Suahasil, the 2027 draft budget projects state revenue at Rp3,426 trillion (US$207.3 billion), representing a 6.8 percent increase compared to the 2026 budget forecast. Tax revenue is expected to rise by 10.5 percent to Rp2,908 trillion, reflecting anticipated economic growth of 6 percent and inflation of 3 percent, which together could drive nominal GDP growth to around 9 percent. State expenditure in the 2027 draft budget is planned at Rp4,097.2 trillion, marking a 3.9 percent increase from the 2026 budget outlook. The government intends to ensure that public priorities and essential operations receive adequate funding while promoting greater efficiency in resource allocation. Transfers to regional governments are set at Rp735 trillion, up 5.5 percent from the 2026 budget outlook of Rp696.9 trillion. This increase aims to bolster the ability of local authorities to implement development initiatives effectively. The government’s poverty reduction targets reflect progress made in recent years, including a decline in the overall poverty rate from 8.57 percent in August 2024 to 8.25 percent in August 2025. Similarly, the unemployment rate dropped slightly from 4.91 percent to 4.85 percent during the same period. These improvements underscore the effectiveness of existing policies and provide a foundation for more aggressive goals by 2027. Additional metrics include an open unemployment rate target of between 4.30 and 4.87 percent, a Gini ratio measuring income inequality of 0.362–0.367, and a Human Capital Index aimed at reaching 0.575. The government has also pledged to enhance tax compliance and ensure the sustainability and credibility of the 2027 state budget. Officials stress that maintaining fiscal discipline is crucial for long-term economic resilience and development. As these targets are implemented, they will require close monitoring and adjustments based on evolving economic conditions and performance indicators. The success of this strategy will depend on coordinated efforts across various sectors and continued commitment to both fiscal prudence and inclusive growth. The government has acknowledged the importance of balancing economic expansion with fiscal restraint. By focusing on improving the quality of government spending and ensuring that resources are allocated efficiently, officials aim to create a more stable and prosperous future for Indonesia. The upcoming years will test whether these ambitious goals can be achieved within the constraints of available resources and changing global economic dynamics.

How this report was made. Objective News wrote this report from 2 source articles, using AI-assisted synthesis under our methodology. It is our own text, not a copy of any single outlet. Read our methodology.

Responsible editor: Matej BašaSpotted an error? Report it

4 reports

The Jakarta Post logoThe Jakarta PostIndependentCenterFactual 95Objective 988/31/2026
Bank Jakarta aims to go public in 2027

Bank Jakarta has announced plans to go public by 2027. This move would mark a significant step in the bank's development strategy, potentially increasing its capital base and expanding its market presence. Going public typically involves offering shares to the general public through a stock exchange, which can provide the institution with additional funding for growth initiatives. However, the announcement does not specify the exact timeline or conditions under which this transition will occur.

Bias read (Center): The article reports on a financial institution's strategic decision to go public, which is primarily an economic and business-related matter. There is no indication of political bias in the framing of the story, as it focuses on the potential benefits and implications of the bank's IPO without favor

Why factuality (95): Both articles from The Jakarta Post report the same claim about Bank Jakarta aiming to go public in 2027. Since no primary source document was available, factuality is judged based on consistency between sources. The information appears to be consistently reported across both articles, suggesting re

Why objectivity (98): The articles present the information in a neutral tone, simply reporting the plan without expressing personal opinion or bias. There is no emotional language or editorializing, maintaining a balanced and objective stance.

The Jakarta Post logoThe Jakarta PostIndependentCenterFactual 95Objective 988/31/2026
Bank Jakarta aims to go public in 2027

The article announces that Bank Jakarta plans to go public in 2027. The bank, which is based in Indonesia, has outlined its intention to list on the stock exchange, marking a significant step in its expansion strategy. This move is expected to increase transparency and attract more investors. The announcement was made through a press release by the bank, though specific financial details or timelines beyond 2027 were not provided.

Bias read (Center): The article presents factual information about a banking institution's plan to go public without overtly favoring any political ideology. It does not take a stance on economic policies or political agendas, maintaining a neutral tone.

Why factuality (95): This article is identical in content to the first article from The Jakarta Post, reinforcing the consistency of the claim about Bank Jakarta going public in 2027. As with the first article, factuality is assessed based on cross-source agreement rather than a primary source. The repeated claim suppor

Why objectivity (98): The article maintains an impartial tone, presenting the information as a straightforward report without any subjective interpretation or emotional appeal. It adheres to a neutral and factual style throughout.

Antara News logoAntara NewsState / PublicCenterFactual 95Objective 909/1/2026
Indonesia targets 6.5 percent poverty rate by 2027

Indonesia's Finance Minister Purbaya Yudhi Sadewa announced the government's plan to reduce the national poverty rate to between 6.0 and 6.5 percent by 2027, along with an economic growth target of 6.0 percent. This announcement was made during a meeting with Commission XI of the House of Representatives regarding the 2027 Draft State Budget. The proposed budget outlines state revenue and expenditure figures, aiming to maintain a controlled fiscal deficit. Additional goals include reducing the open unemployment rate to between 4.30 and 4.87 percent, lowering the Gini coefficient to measure income inequality, and improving the Human Capital Index. The government has outlined macroeconomic projections such as inflation rates, interest rates, and currency exchange rates. These targets follow a trend of declining poverty and unemployment rates observed in recent years.

Bias read (Center): The article presents the government's economic and poverty reduction targets in a neutral manner, focusing on stated objectives and financial figures without overtly favoring any particular political stance. It includes direct quotes from the finance minister and outlines both the goals and the宏观经济(

Why factuality (95): This article corroborates the key facts presented in Article 0, such as the 2.4% fiscal deficit target, revenue projections, and expenditure plans. Additional details like the poverty reduction goal and macroeconomic assumptions provide further context that aligns with the cross-source consensus.

Why objectivity (90): The article maintains a neutral tone throughout, presenting goals and targets without taking sides or injecting personal opinion. It uses formal language and cites official sources, contributing to a balanced and objective portrayal of the budget proposal.

Antara News logoAntara NewsState / PublicCenterFactual 95Objective 908/31/2026
Indonesia to tighten spending as 2027 budget targets 2.4 pct deficit

Indonesia's 2027 draft state budget aims to reduce the fiscal deficit to 2.4% of GDP, according to Deputy Finance Minister Suahasil Nazara. The budget prioritizes improving the quality of government spending while maintaining essential public services and regional transfers. Revenue projections for 2027 stand at Rp3,426 trillion, with tax revenue expected to rise by 10.5% to Rp2,908 trillion. Expenditure is planned at Rp4,097.2 trillion, reflecting a 3.9% increase from the previous year. The government emphasizes efficiency in spending while ensuring adequate funding for critical areas such as social protection, government operations, and regional transfers. Transfers to regional governments are set to increase by 5.5%, aligning with local development needs.

Bias read (Center): The article presents the government's fiscal strategy as a balanced approach, emphasizing both deficit reduction and improved spending quality. It does not overtly criticize or praise specific policies, nor does it frame the narrative in a clearly left or right-leaning manner. The focus remains on客观

Why factuality (95): The article provides specific figures regarding Indonesia's 2027 budget including a 2.4% fiscal deficit target, projected revenues of Rp3,426 trillion, and expenditures of Rp4,097.2 trillion. These numbers align with the cross-source consensus found in Article 1, which also mentions similar figures.

Why objectivity (90): The article presents information in a neutral manner, using direct quotes from officials and avoiding overtly biased language. It focuses on factual data and official statements without apparent editorializing or emotional framing.

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