The Prabowo-Gibran Synchronization Task Force Team Commits To Maintain The State Budget Deficit And Debt Ratio

JAKARTA - The Head of the Prabowo-Gibran Synchronization Task Force Team, Sufmi Dasco Ahmad, emphasized and ensured the commitment of the elected presidential government in 2024-2029 Prabowo Subianto to discipline and prudent in managing fiscals.

Dasco said that in the future the Prabowo-Gibran government will maintain a 3 percent deficit limit of the 2025 State Budget (GDP) and ensure that the debt-to-GDP ratio in the 2025 State Budget will remain at the level that has been maintained so far, which is in the range of 30 percent.

"The government remains steadfast in its commitment to sustainable and careful fiscal management," Dasco said in his official statement, Thursday, July 11,

Dasco said that the Prabowo-Gibran government has three main goals for fiscal management, namely obeying the practice of prudence by limiting the deficit by 3.0 percent and maintaining the debt-to-GDP ratio in the quo status.

"And continue the fiscal discipline that has been established during the Jokowi administration," he explained.

Dasco said the commitment to fiscal discipline would be maintained by the Prabowo-Gibran government because of the importance of investment in the private sector in encouraging economic growth.

According to Dasco, the government of Prabowo-Gibran will focus on creating jobs to stimulate growth and generate dollars to finance economic growth.

"Treating a healthy policy environment and pro-business is very important," he said.

Dasco's statement is in line with Prabowo Subianto's younger brother, Hashim Djojohadikusumo, who revealed that in the future the government will not increase debt without increasing state revenue.

This was revealed by Hashim in an interview in London with the Financial Times. He believes Indonesia can maintain the investment rating if the government increases state revenue.

"We don't want to increase the level of debt without increasing income," said Hashim.

Hashim also said that he had discussed with the World Bank or the World Bank regarding prudent and prudent debt management for Indonesia, and according to the World Bank, 50 percent of GDP for Indonesia is still at a safe and prudent level of state financial management.

The amount is still below the debt limit that has been set, namely 60 percent of GDP in accordance with Law (UU) Number 17 of 2003 concerning State Finance.

According to him, the increase in state revenue can be obtained from various sources, such as from extensification of taxes, excise, royalties from mining and import duties.

Previously last month, June, members of the Prabowo-Gibran financial task force team, Thomas Djiwandono or Tommy Djiwandono, had also said the same thing that Prabowo would not increase the ratio of state debt to 50 percent of gross domestic product (GDP).

"We are not at all discussing the debt target to GDP. This is not an official policy plan," said Thomas.

Thomas' statement denies a previous Bloomberg report stating that Prabowo's rumors will increase the ratio of state debt to that level. The report then harmed the state currency and the Indonesian bond market.

Thomas stated that Prabowo himself had not yet targeted the debt level and would comply with applicable legal restrictions regarding fiscals.

"It is important to note, which is why Prabowo and his formal team talk about fiscal caution, because it is in accordance with these principles," said Thomas.

He also ensured that the Prabowo task force team and the Minister of Finance Sri Mulyani team were focusing on increasing state revenue, reviewing state spending, and looking for budget space for important programs, such as providing nutritious food for students at school and nutrition for pregnant women.