The Indicative Budget for the Ministry of Agriculture Decreases by 45% in 2025

Economics & Macro

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Adi Ahdiat 21/05/2024 12:48 WIB

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According to the Ministry of Agriculture's (KEM PPKF) document, the indicative budget for the Ministry of Agriculture will decrease by 45% in 2025. The most significant decrease is in the budget alloc

Allocation of the State Budget (APBN) and Indicative Budget Ceiling for the Ministry of Agriculture by Program (2024-2025)

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The Indicative Budget for the Ministry of Agriculture Decreases by 45% in 2025

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Allocation of the State Budget (APBN) and Indicative Budget Ceiling for the Ministry of Agriculture by Program (2024-2025)

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The indicative budget allocation for the Ministry of Agriculture (Kementan) will significantly decrease in 2025.

This is evident from the *Macroeconomic Framework and Main Points of Fiscal Policy for 2025* (KEM PPKF) released by the Ministry of Finance in May 2024.

According to the Ministry of Finance, the indicative budget is a preliminary budget allocation given to ministries/agencies as a guideline for preparing next year's work plan.

The "indicative budget" is formulated from a basic budget benchmark plus new initiatives, and will later become the "budget allocation" after adjustments by the ministries/agencies.

Its status will then change again to "budget allocation" after discussions with the DPR (House of Representatives).

Based on the latest KEM PPKF, the indicative budget allocation for Kementan in 2025 is Rp8.07 trillion.

This is a decrease of approximately Rp6.7 trillion, or a 45% reduction compared to the budget allocation in the 2024 State Budget (APBN).

This reduction did not occur across all budget items. The item with the steepest decrease is the Program for the Availability, Access, and Consumption of Quality Food.

In the 2024 APBN, this food program received a budget allocation of approximately Rp8.2 trillion. However, in 2025, its indicative budget has decreased by 63.3% to Rp3 trillion.

Here is a breakdown of the percentage increase/decrease in the indicative budget allocation for Kementan in 2025 per program:

* Program for the Availability, Access, and Consumption of Quality Food: indicative budget down 63.3% (compared to the budget allocation in the 2024 APBN)
* Management Support Program: down 37.8%
* Value Added and Industry Competitiveness Program: up 13.9%
* Vocational Education and Training Program: up 2.7%
* Total indicative budget allocation for Kementan: down 45.3%

Editor : Adi Ahdiat

"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."