Jakarta. Indonesia aims to expand by up to 6.5% in 2027, setting an ambitious target as the resource-rich country banks on a new commodity export system to avoid under-invoicing.

President Prabowo Subianto announced the goal during a fiscal policy speech that acted as a curtain-raiser to the 2027 spending plans. He insists that the government should be able to lift growth to 8% within his term, a goal seen as ambitious as the figure tops the country’s natural growth rate of 5%. 

“I’m confident that Indonesia’s economy will expand within a range of 5.8 and 6.5% in 2027, towards an 8% growth in 2029,” Prabowo told the country's lawmakers in Jakarta on Monday.

He went on to say how rampant "under-invoicing" -- manipulation of figures in clearance documents -- had prompted the government to centralize the export process under state control.

Government estimates showed Indonesia -- home to abundant coal and palm oil supplies -- had lost $908 billion from export under-invoicing between 1991 and 2024.

The new mechanism will take place in phases, starting next month, before the appointed state-run body takes care of the shipments in September. The firm in question will handle the transactions with the foreign buyers. This system also affects strategic commodities such as palm oil.

“The designated state-owned enterprise will act as a marketing facility. ... We want to tackle under-invoicing,” Prabowo said, without going into details of this body.

Indonesia’s economy rose 5.61% year-on-year in Q1 2026, beating analysts’ expectations. Prabowo’s speech also came amid a weakening rupiah as clashes between the US and Iran drag on.

Bloomberg spot market data showed that the rupiah traded at Rp 17,705 per dollar as of Wednesday Jakarta time at 11.24 a.m. In Prabowo’s notes, Indonesia hopes to keep the rupiah exchange rate at between Rp 16,800 and Rp 17,500 per dollar next year.

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