Indonesia’s 2027 Draft Budget Assumes IDR17,500 per US Dollar. How Is Energy-Subsidy Risk Calculated?
The Indonesian government is using an average exchange-rate assumption of IDR17,500 per US dollar in the 2027 Draft State Budget, known as the RAPBN. The figure serves as one of the parameters for estimating revenue, expenditure, the fiscal deficit, financing, and the annual cost of energy subsidies and compensation.The exchange-rate assumption does not operate in isolation. The government is also using an Indonesian Crude Price assumption of US$75 per barrel, oil lifting of 612,500 barrels per