Indonesia sets ambitious 2027 economic growth targets

The Indonesian government and local authorities have set ambitious economic growth targets for 2027. In Semarang, Mayor Agustina Wilujeng announced through the 2027 Regional Government Work Plan (RKPD) that the city aims for economic growth between 6.70% and 8.55%. This plan serves as the third year of the 2025–2029 Regional Medium-Term Development Plan (RPJMD), focusing on five pillars: clean, healthy, smart, prosperous, and resilient Semarang.

At the national level, the 2027 State Budget Draft (RAPBN) targets a 6% economic growth rate, a figure not reached in the last 13 years. The budget includes Rp4,097 trillion in state spending, with Rp549.9 trillion allocated for social protection and a target of Rp2,322 trillion for investment. However, concerns have been raised regarding the distribution of this growth. Data indicates a significant disparity in credit growth, with investment credit rising by 24.9% while credit for micro, small, and medium enterprises (MSMEs) grew by only 1.05%. Additionally, while the government aims to reduce the Gini ratio to between 0.362 and 0.367, recent trends show a slight increase in inequality.