JP Morgan Weighs In on Indonesia's 2027 State Budget Draft
J.P. Morgan has praised Indonesia's 2027 state budget draft for balancing economic growth with fiscal discipline. The budget targets a 6% growth rate while aiming to reduce the fiscal deficit to 2.4% of GDP.
Why it matters
Positive financial outlooks from major institutions like J.P. Morgan can influence foreign investment and market stability in emerging economies.
TEMPO.CO, Jakarta - J.P. Morgan Indonesia stated that the 2027 State Budget (APBN) reflects a constructive balance. The financial services firm, part of U.S.-based JPMorgan Chase, believes this balance strikes a middle ground between sustaining economic growth and maintaining fiscal discipline."Amid ongoing global uncertainty, Indonesia's economic resilience, strong domestic liquidity, and various ongoing reform efforts remain the foundation for long-term growth potential," JP Morgan Indonesia CEO Gioshia Ralie said in a written statement quoted on Friday, September 4, 2026.Under the macroeconomic assumptions for the 2027 draft state budget, the government targets economic growth of 6.0 percent and inflation at 2.5 percent. Meanwhile, the exchange rate is projected at Rp17,500 per U.S. dollar, with 10-year government bond yields expected around 6.9 percent.State revenue in the 2027 draft budget is targeted at Rp3,426.0 trillion, marking a 6.8 percent increase from the previous year.
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