Jakarta – Prabowo Subianto, who is set to be the President for the term 2024-2029, has expressed his commitment to keeping the fiscal deficit in the State Budget (APBN) below 3% relative to the Gross Domestic Product (GDP).
The Indonesian Minister of Finance, Sri Mulyani, made this revelation during a press conference on the Current Fundamental Economic Conditions and the 2025 State Budget at the Central Office of the Directorate General of Taxes in South Jakarta on Monday (June 24).
“We have discussed this with President-elect Prabowo, and he has given us his assurance. The 2024 APBN will maintain a deficit below 3%, and this is a commitment that has been mutually agreed upon. Prabowo is dedicated to keeping the deficit under 3%,” Sri Mulyani stated.
She also mentioned that, based on the macro assumptions for the 2025 APBN, the government and the House of Representatives (DPR) have agreed that the budget deficit will range between 2.29% and 2.82% of the GDP.
Sri Mulyani clarified, “The 2025 APBN is still within the expected range.”
Furthermore, the announcement regarding the continued management of the fiscal deficit dispels speculations about the debt ratio potentially reaching 50% of the GDP.
“The process of the 2025 APBN Bill, through ongoing communication, coordination, and alignment with the President-elect’s team, demonstrates unity between the Bill drafted under President Jokowi and the priority programs envisioned by the new administration under President-elect Prabowo,” the Minister of Finance explained.
During the same event, Thomas Djiwandono, a Financial Sector Member of the Prabowo-Gibran Government Transition Task Force, affirmed that the Prabowo-Gibran administration has no intention of increasing the debt ratio to 50% of the GDP.
“That is not feasible. Essentially, we are committed to the targets set by the government and to be agreed upon by the DPR,” he emphasized.
Thomas reiterated his team’s dedication to meeting the targets mutually decided by the government and DPR in the upcoming 2025 State Budget.
“Fundamentally, we are committed to the targets planned by the government and agreed upon by the DPR,” Thomas reiterated.
