Deficit Increase in 2025 Draft State Budget Not a Problem for Capital Market

Illustration (Photo: Doc Antara)

JAKARTA - Capital market observer from the University of Indonesia (UI) Budi Frensidy assessed that the increase in the deficit assumption in the 2025 State Budget Draft (RAPBN) will not be a problem for the capital market.

"The deficit percentage is still not much different from before, so there is no issue about this," said Budi Frensidy as reported by ANTARA, Monday, August 19.

Considering this, he stated that market and public confidence should be maintained.

The deficit value in the 2025 RAPBN is assumed to be 2.53 percent of Gross Domestic Product (GDP) or IDR 616.2 trillion.

This figure is higher than the projection in the 2024 RAPBN which was recorded at 2.29 percent of GDP or IDR 522.8 trillion.

Not only the deficit value, he said that the interest rate assumption is also not much different from the current conditions, so it is unlikely to cause volatility in the market.

"The government does not seem very optimistic about the condition of our economy next year," said Budi.

He said that this can also be seen from the assumption of the rupiah exchange rate next year which is in the range of IDR 16,100 per US dollar.

According to him, this shows that the government is trying to be realistic, although a little pessimistic.

"It is not difficult to ensure that (this assumption) is achieved," he said.

Budi hopes that the new government will be able to maintain the rupiah exchange rate below IDR 16 thousand per US dollar.

In addition, he hopes that the government of the elected President and Vice President Prabowo Subianto and Gibran Rakabuming Raka can boost economic growth to reach 6 percent or more.

"My message is also to keep the debt ratio below 40 percent and the deficit at a maximum of 3 percent," added Budi.