Sri Mulyani Reveals A Deficit Of IDR 616.2 Trillion To Maintain The Balance Of Jokowi And Prabowo's Programs

Minister of Finance Sri Mulyani (Photo; Doc. Antara)

Minister of Finance Sri Mulyani Indrawati explained that the 2025 State Revenue and Expenditure Budget deficit (APBN) target of IDR 616.2 trillion or 2.53 percent of gross domestic product (GDP) is to maintain the balance of the new government program.

"This is a level of deficit that can maintain a balance between the sustainability of government priority programs and provide space for the newly elected government to carry out the program according to its promise," Sri Mulyani said at the DPR RI Plenary Meeting on the State Budget Bill for Fiscal Year 2025, Tuesday, August 27.

Sri Mulyani explained in addition to these two reasons, that the deficit target is used to maintain long-term fiscal sustainability where the 2025 RAPBN has strategic value as an instrument so that the transition process can run effectively and maintain the state budget so that it is credible and sustainable.

On the other hand, Sri Mulyani said that she also appreciated the views of eight factions in the DPR regarding requests from the government to remain vigilant in managing the deficit.

According to Sri Mulyani, the government will continue to maintain a good and sustainable primary balance and APBN deficit.

Therefore, Sri Mulyani explained that in order to finance the deficit and financing, government debt will be managed carefully and the debt ratio will be maintained at a safe limit so that it is relatively low compared to other countries.

"The deepening of the market to create cost of funds is efficient and stable, encouraging the development of innovative and sustainable financing schemes to continue to be driven by private participation," he said.

Sri Mulyani said the government would continue to make effective investments to state-owned enterprises and the government's Public Service Agency (BLU).

In addition, the government will also encourage the Government and Business Entity Cooperation (KPBU) scheme and strengthen investment management and special mission vehicle (SMV).

"To increase development financing and community participation. Also to increase access to MSMEs and low-income people to capital," he explained

Previously, President Joko Widodo (Jokowi) had read out the Financial Note and Draft State Revenue and Expenditure Budget (RAPBN) 2025. In the Financial Note read, the deficit set for the 2025 RAPBN is Rp616.2 trillion or 2.53 percent of GDP.