Indonesia's 2025 State Budget Allocation: Rp3.613 Trillion, a 5.9% Increase

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Erlina Fury Santika 20/08/2024 13:43 WIB

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The Indonesian government has set the 2025 state budget at Rp3,613.1 trillion, a 5.9% increase from the 2024 outlook.

Nominal and Real Growth of Government Spending (2020-2025)

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Nominal and Real Growth of Government Spending (2020-2025)

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The Indonesian government has allocated Rp3,613.1 trillion (approximately US$237 billion based on current exchange rates, but the exact amount depends on the date of conversion) in the 2025 State Budget (RAPBN), as detailed in Book II of the Financial Note.

This amount comprises Rp2,693.2 trillion (74.5%) for central government spending and Rp919.9 billion (25.5%) for transfers to regions (TKD).

This represents a 5.9% increase from the 2024 outlook of Rp3,412.2 trillion (Rp2,558.2 trillion for central government spending and Rp854 trillion for TKD).

The Financial Note states that the overall policy on state expenditure is aimed at improving the quality of spending to effectively support inclusive and sustainable economic growth.

The government notes that state expenditure during 2020-2024 has been directed towards supporting inclusive economic growth, improving human resource quality, and infrastructure development.

Economic growth contracted by 2.07% in 2020 due to the pandemic but rebounded to 3.69% in 2021.

The report explains that average economic growth reached 4.7% between 2021 and 2023, with the poverty rate falling from 9.36% in 2023 to 9.03% in 2024 (BPS data, March 2024), and the unemployment rate decreasing from 5.32% in 2023 to 4.82% in 2024 (BPS data, May 2024).

This economic performance is reflected in the increase in state expenditure from Rp2,595.5 trillion in 2020 to Rp3,121.2 trillion in 2023, representing an average annual growth of 6.3%.

The Ministry of Finance (Kemenkeu) report states that amidst global uncertainty and dynamic domestic conditions, the State Budget remains a crucial shock absorber to maintain public purchasing power and national economic growth momentum.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's 2025 State Budget Allocation: Rp3.613 Trillion, a 5.9% Increase

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Indonesia's 2025 State Budget Allocation: Rp3.613 Trillion, a 5.9% Increase

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