APBN 2025 (Indonesian State Budget 2025) : The Government’s Commitment to Accelerating Inclusive an

On 20 September, 2024, the Indonesian government and the House of Representatives (DPR) approved the Indonesian 2025 State Budget (APBN), designed during a government transition period. The budget focuses on sustainable, inclusive economic growth while addressing global challenges and maintaining economic stability.

The Indonesian 2025 State Budget (APBN) aims to enhance national competitiveness and productivity, aligned with Indonesia’s 2045 vision. Key programs include free nutritious meals, school renovations, healthcare, and initiatives to boost food security and reduce poverty.

Key Macroeconomic Assumptions for 2025:

• Economic growth: 5.2%
• Inflation: 2.5%
• Rupiah exchange rate: Rp16,000/USD
• Oil lifting target: 605,000 barrels/day
• Gas lifting target: 1,050,000 BOEPD

The government aims to reduce poverty to 7%-8%, eliminate extreme poverty, and lower unemployment to 4.5%-5%. Food security programs will support farmers and fishers, improving their exchange rates.

Revenue and Expenditure:

State revenue is projected at IDR 3,005.1 trillion, with a focus on tax reform and Non-Tax Revenues (PNBP). State spending is set at IDR 3,621.3 trillion, allocated to central government and regional transfers to support economic growth.

Deficit and Debt Management:

The 2025 budget deficit is projected at 2.53% of GDP, with IDR 775.9 trillion in debt financing to be managed prudently. Investment financing, totaling IDR 154.5 trillion, will be selectively allocated to key sectors.