President Joko “Jokowi” Widodo delivers the Presentation of the Government Statement on the Bill on the State Budget for the 2025 Fiscal Year and its Financial Note at the Plenary Session of the House of Representatives of the Republic of Indonesia, held at Nusantara Building, Jakarta, Friday (08/16). (Source: YouTube Channel of Presidential Secretariat)
The Government has affirmed its commitment to using the 2025 State Budget (APBN) to boost Indonesia’s economic and social development and create more job opportunities.
President Joko “Jokowi” Widodo made the statement during the Presentation of the Government Statement on the Bill on the State Budget for the 2025 Fiscal Year and its Financial Note at the Plenary Session of the House of Representatives of the Republic of Indonesia, held at Nusantara Building, Jakarta, Friday (08/16).
“We must utilize the State Budget to accelerate progress and help Indonesia escape the middle-income trap, by taking advantage of demographic bonus, continuing economic transformation, improving investment appeal, and creating more job opportunities,” the President said.
The President expressed hope that the 2025 State Budget Bill will support sustainable economic growth, maintain price stability, and improve people’s welfare.
“Inflation is expected to be maintained at around 2.5 percent, and the economy is projected to grow by 5.2 percent. Due to the relatively stagnant global economic conditions, our growth will depend more on domestic demands. People’s purchasing power will be tightly maintained through controlled inflation, job creation, and support for social assistance and subsidy programs,” he said.
The Head of State also underlined that the Government’s strategy is to increase domestic products with high-added value that are export-oriented, while also maintaining fiscal sustainability to drive economic growth and strengthen Indonesia’s position in the global market.
“The Government will persist in promoting high-value, export-oriented products, supported by competitive fiscal incentives while ensuring fiscal sustainability. We will balance fiscal, monetary, and financial policies to accelerate economic growth and maintain the stability of our financial system,” he stressed.
In addition, the President highlighted that the Rupiah exchange rate against the US dollar is expected to be hover around Rp16,100 in the coming quarter, in line with global dynamics that influence the currency market. In the meantime, the yield on 10 year-government bonds is estimated at 7.1 percent indicating an adaptive monetary policy in response to global economic uncertainty.
On that occasion, President Jokowi asserted that the Indonesian Government is committed to remain responsive to global monetary changes, which includes making necessary adjustments to fiscal and monetary policies to maintain national economic stability amid global market turmoil.
“The Government will continuously respond to global monetary dynamics. The price of Indonesian crude oil (ICP) is estimated at US$82 per barrel, with oil production expected to reach 600,000 barrels per day and natural gas production estimated at 1.005 million barrels of oil equivalent per day,” the President remarked. (KS/ABD) (RIF/MMB)
