Bahana Securities economist Purbiantoro Lintang said in a report Indonesia’s official 2027 growth target of 6.0% is overly ambitious given ongoing Middle East tensions and persistently high global interest rates. The government’s 2027 budget assumes an avg inf rate of 2.5% and narrows the fiscal deficit to 2.4% of GDP from 2.85% in 2026; Lintang cautions that delivering the deficit reduction requires revenue growth to outpace spending while priority programs such as free meal schemes still consu

Bahana Securities economist Purbiantoro Lintang said in a report Indonesia’s official 2027 growth target of 6.0% is overly ambitious given ongoing Middle East tensions and persistently high global interest rates. The government’s 2027 budget assumes an avg inf rate of 2.5% and narrows the fiscal deficit to 2.4% of GDP from 2.85% in 2026; Lintang cautions that delivering the deficit reduction requires revenue growth to outpace spending while priority programs such as free meal schemes still consume a sizable share of the budget. Bahana forecasts 5.0% GDP growth in 2027 and warns slower growth could create government revenue shortfalls.