2025 Draft State Budget Reflects Prabowo-Gibran’s Programs for Smooth Transition

Arnoldus Kristianus, Alfida Rizky Febrianna
August 26, 2024 | 10:13 pm
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From left: B-Universe Media Holdings CEO Rio Abdurachman, Executive Chairman Enggartiasto Lukita, National Development Planning Minister Suharso Monoarfa, Deputy Finance Minister Suahasil Nazara, and B-Universe News Director Apreyvita  Wulandari, relaunch The Jakarta Globe in Jakarta on Aug. 26, 2024. (JG Photo/Joanito De Saojoao))
From left: B-Universe Media Holdings CEO Rio Abdurachman, Executive Chairman Enggartiasto Lukita, National Development Planning Minister Suharso Monoarfa, Deputy Finance Minister Suahasil Nazara, and B-Universe News Director Apreyvita Wulandari, relaunch The Jakarta Globe in Jakarta on Aug. 26, 2024. (JG Photo/Joanito De Saojoao))

Jakarta. The 2025 Draft State Budget (RAPBN) integrates the programs of President-elect Prabowo Subianto and Vice President-elect Gibran Rakabuming Raka, ensuring continuity in development projects and a smooth government transition.

Deputy Finance Minister Suahasil Nazara said that the budget has been crafted to align with the incoming administration's goals, reinforcing the theme of continuity. "We are in talks with the House of Representatives (DPR) to finalize the 2025 Draft State Budget," Suahasil said during The Jakarta Globe’s 2025 Economic Perspective forum at Hotel Mulia Jakarta on Monday.

The government plans to allocate a total of Rp 3,613 trillion for 2025. Of this, Rp 722.6 trillion (20 percent) will be dedicated to education, supporting school operational costs for 53.3 million children and other educational initiatives.

Health funding is set at Rp 197.8 trillion (5.5 percent), focusing on the National Health Insurance (JKN) program, which will benefit 96.8 million people. Social protection will receive Rp 504.7 trillion, funding social aid, staple food coupons, and elderly support.

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Food security will be supported with Rp 124.4 trillion for enhancements across the supply chain, from pre-production to marketing. Infrastructure spending is targeted at Rp 400.3 trillion, covering areas such as food, education, health, and housing. The defense budget is set at Rp 372.3 trillion for modernizing equipment and boosting cybersecurity.

Telisa Aulia Falianty, a professor at the Faculty of Economics and Business, University of Indonesia, expressed optimism that the 2025 budget will make a meaningful impact. She highlighted the need for a balanced approach to spending, revenue collection, and fiscal sustainability.

"This transitional budget incorporates input from the new administration, allowing for a gradual rollout of new programs while maintaining flexibility," Telisa noted.

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