"Mr. Jokowi's instruction is clear: Include all visions and missions of the President-elect in the 2025 budget. The government is working on this together with the parliament," head of the ministry's Fiscal Policy Agency (BKF), Febrio Kacaribu, informed during a discussion with the Institute for Development of Economics and Finance (INDEF) here on Tuesday.
He described the 2025 budget draft as exceptional, saying it is a transitional state budget between the Widodo and Prabowo administrations.
The ministry is committed to prioritizing continuity in drafting the 2025 budget so as to prevent economic disruption and maintain development, the agency head said.
While affirming the government's commitment to collaborate with the parliament in drafting the 2025 budget, Kacaribu expressed the hope that the transition to the 2025 budget will be smooth.
"The process requires more intensive communication and consultation. We hope the transition will be smooth and not cause any disruption," he said.
Kacaribu affirmed the continuity of a fiscal discipline regime, including keeping the state budget deficit under 3 percent, for the new administration. The state budget drafting process will also prioritize prudence in fiscal policies, he added.
Finance Minister Sri Mulyani Indrawati announced on Monday that the government has reached a preliminary agreement with the House of Representatives' (DPR's) Budget Committee regarding the macro-fiscal posture for the 2025 budget.
She informed that the two parties have agreed on economic growth assumption of 5.1 to 5.5 percent for 2025, with inflation at 1.5–3.5 percent and the Indonesian rupiah exchange rate at Rp15,300–15,900 per US dollar.
The government and the parliament have also agreed on the assumption of a 7- to 8-percent poverty rate, zero percent extreme poverty, and a 0.379 to 0.382 Gini ratio for 2025.
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Translator: Rizka Khaerunnisa, Nabil Ihsan
Editor: Azis Kurmala
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