The meeting was chaired by DPR Deputy Speaker Lodewijk F. Paulus.
Finance Minister Sri Mulyani Indrawati, who represented the government at the session, said that the 2025 State Budget should be implemented prudently to respond to the ongoing global uncertainty and economic risks.
"We should remain vigilant to various risks such as global and geopolitical tensions which can cause war, the economic slowdown in China -- our main trading partner, as well as the economic downturn in Europe and post-election developments in the US," she expounded.
In the 2025 State Budget, the government has set the state revenue target at Rp3,005.1 trillion (US$196.04 billion) and outlined state expenditure of Rp3,621.1 trillion (US$236.22 billion). The deficit is projected to reach Rp616.19 trillion (US$40.2 billion).
The budget also sets aside Rp1,160.09 trillion (US$75.68 billion) for the expenditures of government ministries and agencies, Rp1,541.36 trillion (US$100.55 billion) non-ministry expenditures, and Rp919.87 trillion (US$60.01 billion) for transfers to regions.
"The transfer to region allocation will fund the development of new economic sources in regions, as well as bolster investments and encourage (regional) participation in the global supply chain," Indrawati said.
The target for state revenue from taxation is Rp2,490.9 trillion (US$162.5 billion) and for non-tax state revenue Rp513.6 trillion (US$33.51 billion).
Meanwhile, the macroeconomic assumptions of the 2025 budget comprise economic growth of 5.2 percent, inflation of 2.5 percent, and interest rate of 7 percent for 10-year government securities.
The budget also assumes Indonesian rupiah-US dollar exchange rate of Rp16 thousand in 2025, crude oil lifting of 605 thousand barrels per day and crude oil price of US$82 per barrel, and gas production of 1.005 million barrels of oil equivalent per day.
The development indicators and targets in the 2025 State Budget include a 4.5–5.0 percent open unemployment rate, 7–8 percent poverty rate with zero percent extreme poverty, 0.379–0.382 point Gini Ratio, and 0.56-point Human Capital Index.
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Translator: Bayu Saputra, Nabil Ihsan
Editor: Azis Kurmala
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