Urgent: Indonesia outlines $230b for ’25 budget

Indonesia’s government submitted a 2025 budget proposal of 3,613.1 trillion rupiah ($230 billion) to the parliament on Friday, projecting a deficit of 2.53 per cent of GDP, lower than the projected 2.7 per cent for this year.

Outgoing President Joko Widodo emphasised the need for continued structural reforms and a balanced fiscal policy.

Despite concerns about potential changes under President-elect Prabowo Subianto, who has expressed interest in increased borrowing, the budget adheres to legal limits on deficit and public debt.

The budget projects economic growth of 5.2 per cent in 2025, similar to this year’s forecast, and an inflation of around 2.5 per cent. To boost revenue, the government proposes a new excise tax on packaged sugary drinks.

Attribution: Reuters

Subediting: Y.Yasser