“Our State Budget remains safe. We see the trajectory from our report until May (2025), and the trajectory is quite controlled,” the ministry’s director general of economic and fiscal strategy (DJSEF), Febrio Kacaribu, informed on Saturday.
He recognized the pressure on state revenue, adding that on the expenditure side, the government has begun to carry out spending.
“The deficit was small,” he said.
His party will report on the State Budget condition in the first half to the Indonesian House of Representatives (DPR RI) on July 8, 2025.
Kacaribu said he believes that the report will find the state budget aligned with the projected direction.
Until June, several global events influenced the Indonesian economy, including the reciprocal tariffs announced by the US government and the recent escalation in the conflict between Iran and Israel, which affected the flow of global logistics.
The deadline for reciprocal tariff negotiations between Indonesia and the US is July 8, or 90 days after US President Donald Trump announced the tariffs on main trading partners in early April.
Earlier, Coordinating Minister for Economic Affairs, Airlangga Hartarto, informed that during tariff negotiations, the United States government did not submit additional requests to Indonesia.
Its 32 percent reciprocal tariff on Indonesia is only aimed at balancing the trade balance between the two countries.
Meanwhile, on Friday, President Prabowo Subianto and Malaysian Prime Minister Anwar Ibrahim discussed the developments in the Iran-Israel war and expressed support for the current ceasefire between the two countries.
The two leaders said they hoped the ceasefire would lead to peace.
“We continue to encourage a peaceful resolution from all parties and support the ceasefire between Israel and Iran. We hope this process can continue toward peace,” Prabowo said in a joint press statement with PM Anwar Ibrahim at Merdeka Palace, Jakarta, on Friday.
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Translator: Ahmad Muzdaffar F, Resinta Sulistiyandari
Editor: Azis Kurmala
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