The President-elect for the term 2024-2029, Prabowo Subianto, has committed to maintaining a low fiscal deficit in the State Budget (APBN), specifically below 3% relative to the Gross Domestic Product (GDP). This commitment was confirmed by the Indonesian Minister of Finance, Sri Mulyani, during a press conference discussing the 2025 State Budget.
Sri Mulyani stated that Prabowo has assured them of keeping the deficit below 3% for the 2024 APBN, and this commitment has been mutually communicated. The macro assumptions for the 2025 APBN indicate that the budget deficit will be between 2.29% and 2.82% of the GDP, showing that the posture of the budget is still within range.
There were rumors that the debt ratio would increase to 50% of the GDP, but Sri Mulyani clarified that continuous communication and coordination with the President-elect’s team have ensured no gap between the current budget plans and the priorities of the new administration.
Thomas Djiwandono, a Financial Sector Member of the Prabowo-Gibran Government Transition Task Force, also emphasized their commitment to meeting the targets planned by the government and agreed upon by the DPR in the 2025 State Budget. He stated that increasing the debt ratio to 50% of the GDP is not feasible, and they remain committed to the current targets.
