Jokowi Targets The Prabowo-Gibran Era Budget Deficit Of IDR 616.2 Trillion

President Jokowi in the 2024 financial note (Photo: Screenshot of youtube setpres by Fakhri Rezy/VOI)

JAKARTA - President Joko Widodo (Jokowi) is targeting a deficit in the 2025 State Revenue and Expenditure Budget (APBN) of IDR 616.2 trillion or 2.35 percent of Gross Domestic Product (GDP).

Jokowi hopes that this deficit target will be managed by the Prabowo-Gibran government by prioritizing the principle of prudence.

"The 2025 budget deficit is planned at 2.53 percent of GDP or IDR 616.2 trillion which will be financed by utilizing safe and carefully managed financing sources," he said in a speech delivering government information on the 2025 State Budget Bill, at the DPR Building, Parliament Complex, Jakarta, Friday, August 16.

The deficit comes from the difference between state revenue and expenditure targets in 2025. Where revenue in 2025 is targeted to reach IDR 2,996.9 trillion, consisting of tax revenues of IDR 2,490.9 trillion and non-tax state revenues (PNBP) of IDR 505.4 trillion.

Meanwhile, state spending in 2025 is planned at IDR 3,613.1 trillion, consisting of, Central Government expenditures of IDR 2,693.2 trillion, and Transfers to Regions of IDR 919.9 trillion.

Jokowi said that spending will be maintained really efficiently and productive, so that in addition to supporting government priority programs, it can also produce strong multiplier effects on the economy.

"A flexible financing innovation with high caution will continue to be improved through Government and Business Entity Cooperation (PPP), strengthening the role of the Investment Management Institution, and deepening the financial market," he said.