Banggar DPR RI Asks Government To Reduce Macro Assumptions For SBN Tourism And Interest Rates In 2025

Rupiah (Photo: Antara)

Chairman of the DPR RI Budget Agency Said Abdullah asked the government to reduce the assumption that the rupiah exchange rate against the United States (US) dollar in the Draft State Revenue and Expenditure Budget (RAPBN) is targeted at IDR 16,100 per US dollar to IDR 15,900 per US dollar.

"We believe that the transformation of export structures that are of higher value and strengthen investment, as well as the policy of the mix of payment systems that vary from a number of trading partner currencies, will make the rupiah stronger," he said in a Banggar meeting with the Government, Tuesday, August 27.

In addition, the government is also targeting the 10-year State Securities (SBN) interest rate of 7.1 percent. According to Said, this amount can be a higher burden for the government in the future so that it is expected to decrease to 6.9 percent.

"The DPR Banggar Leadership hopes that the SBN interest rate can be lower than the government's proposal in the 2025 RAPBN Financial Note at least at a level of 6.9 percent," he said.

According to Said, the cumulative amount of Indonesia's debt interest from 2015 to 2023 has reached IDR 2,569.4 trillion and the SBN interest rate is one of the highest in the world and has the potential to make fiscal uncreasible.

"With the highest government bond rate compared to peer countries, fiscal is unhealthy," he said.

Said hopes that the 10 year SBN interest rate can be reduced to a lower level and develop a cheaper financing scheme and study the best practicality in managing the SBN interest rate at the level of 1 percent to 3 percent.

"The government must study and develop best practices from peer countries that are at the level of 1-3 percent," he explained.