Minister Of Finance Sri Mulyani Prepares A Social Security Budget Of IDR 513 Trillion In 2025

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani Indrawati has prepared a social protection budget (perlinsos) of IDR 496.9 trillion to IDR 513.0 trillion for the 2025 State Revenue and Expenditure Budget (APBN).

"The social welfare budget in 2025 ranges from Rp496.9 trillion to Rp513.0 trillion," Sri Mulyani said at the DPR Plenary Meeting on Government Submission to the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) in Jakarta, quoted from Antara, Monday, May 20.

The Minister of Finance explained that the budget is planned to be used to accelerate poverty alleviation and reduce gaps between regions.

The steps that will be taken include accelerating poverty alleviation, increasing access to financing for livable and affordable houses, encouraging prosperous farmers, prosperous fishermen, including accelerating independent villages.

Meanwhile, the poverty rate target is targeted to drop to 7 percent to 8 percent, from the latest data of 9.36 percent in 2023. The Gini ratio is expected to continue to improve in the range of 0.379-0.382.

The open unemployment rate in 2025 is set at 4.5 percent to 5.0 percent.

The Human Capital Index (IMM) is also targeted at around 0.56. In addition, the Farmer's Exchange Rate (NTP), and the Fisherman's Exchange Rate (NTN) are also targeted to continue to increase, respectively in the range 113-115 and 104-105.

KEM-PPKF is an official state document that is a reference for the preparation of a Financial Note and Draft State Revenue and Expenditure Budget (APBN) 2025.

The 2025 State Budget is the last during the administration of President Joko Widodo (Jokowi), while the implementation of the 2025 State Budget will be carried out by the Prabowo Subianto and Gibran Rakabuming Raka governments as elected presidents and vice presidents.

In the draft KEM-PPKF, the deficit in the State Revenue and Expenditure Budget (APBN) for the 2025 budget year is targeted to be in the range of 2.45-2.82 percent of Gross Domestic Product (GDP).

State revenue is pegged at around 12.14 percent to 12.36 percent of GDP. Meanwhile, state spending is estimated to be in the range of 14.59 percent to 15.18 percent of GDP.