“The fiscal targets look reasonably prudent on paper”, as state revenue was planned to grow by about 8.6 percent while spending growth was set at 6.6 percent, Economist Intelligence Unit (EIU) Asia analyst Tay Qi Hang told The Jakarta Post on Monday.

“However, the 6 percent [gross domestic product] growth assumption itself looks more like political ambition than empirical projection, particularly since Indonesia has rarely cleared 5.5 percent in recent years, so the credibility of the whole revenue side hinges on that number holding up,” said Tay.

The Financial Notes speech delivered by President Prabowo Subianto on Friday marks the beginning of the 2027 state budget deliberations.

In the speech, which is traditionally held on the working day before Independence Day, the President revealed the key numbers forming the basis of the entire budget plan.

The government and the House of Representatives will discuss these numbers in August and September before the bill passes into law and becomes the guideline for policy execution in 2027.

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The unveiled GDP growth target of 6 percent proposed by the government is far above the typical 5 percent pace Indonesia achieved over the past 15 years.

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