Economists Suggest That The 2025 State Budget Must Focus On Efficiency In Expenditure And Economic Resilience

JAKARTA - Head of Bank Permata economist Josua Pardede assesses that the implementation of the 2025 State Budget is expected to be the right momentum to strengthen Indonesia's economic fundamentals.

Josua suggested that first, the government would continue the role of the State Budget as a shock absorber, especially to protect people's purchasing power from the impact of global and domestic inflation.

"The government optimizes investment in the downstream sector and strategic infrastructure to maintain the momentum of economic growth," he said in his statement, Tuesday, January 7.

Furthermore, Josua said, the government also needs to improve spending quality with operational efficiency and orientation of results in government spending. Specifically, the emphasis on stunting reduction programs, improving the quality of education, and support for food security.

Then, the government also needs to ensure that the deficit remains under control below the 3 percent GDP limit, by utilizing SILPA 2024 as a buffer.

In addition, Josua conveyed that the government also needs to make efficiency in budget allocations for new ministries/agencies, including the quick wins program to support new government policies.

"The government needs to strengthen its risk mitigation strategy against geopolitical uncertainty, climate change, and commodity price fluctuations," he explained.

Meanwhile, several aspects that need to be considered, according to Josua, are increasing food security in the midst of climate change conditions, increasing the added value of exports through strengthening downstreaming in strategic sectors such as nickel, CPO, and coal.

In addition, Josua said that the government also needs to spur investment in digital infrastructure to support MSMEs and the efficiency of government spending.

"Finally, improving the quality of spending has a multiplier effect in increasing people's purchasing power," he said.