Jakarta. The House of Representatives (DPR) has approved the 2025 State Budget (APBN) totaling Rp 3,621 trillion (USD 237.4 billion), which will be utilized by President-elect Prabowo Subianto and Vice President Gibran Rakabuming Raka during the first year of their administration.

The budget includes substantial allocations for key development projects and a projected deficit of Rp 616.19 trillion.

In the plenary session on Thursday, eight parliamentary factions approved the budget, while one faction, the Prosperous Justice Party (PKS), agreed with reservations.

The 2025 APBN outlines a revenue target of Rp 3,005.12 trillion, which includes Rp 2,189 trillion from tax revenues, Rp 301.60 trillion from customs and excise, Rp 513.63 trillion from non-tax state revenues, and Rp 581.1 trillion from grants.

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The expenditure allocation is set at Rp 3,621.31 trillion, with Rp 1,160.08 trillion designated for ministry and agency expenditures, Rp 1,541.35 trillion for non-ministry expenditures, and Rp 919 trillion for regional transfers. The budget also projects a deficit of Rp 616.19 trillion, which is 2.53 percent of the Gross Domestic Product (GDP).

Said Abdullah, Chairman of the DPR's Budget Committee, highlighted several priority programs included in the ministry and agency budget. These programs include the construction of quality hospitals in regional areas with a budget of Rp 1.8 trillion, the renovation of 22,000 schools with Rp 20 trillion, and the development of integrated model schools valued at Rp 4 trillion.

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Additionally, the government has allocated Rp15 trillion for agricultural land intensification and rice field development to bolster national food security.

"This policy aims to address the needs of a competitive labor market. To support the new cabinet composition, the budget committee and the government have agreed to provide flexibility for reallocating funds to meet the needs of the new ministries and agencies,” Said Abdullah said in his report.

Said also noted that the DPR and the government agreed on an allocation of Rp 203.41 trillion for energy subsidies, slightly below the initial government proposal of Rp 204.5 trillion due to a lower exchange rate assumption of the rupiah against the US dollar.

The macroeconomic assumptions for 2025 are as follows:

• Economic Growth: 5.2 percent
• Inflation: 2.5 percent
• Exchange Rate: Rp 16,000 per US dollar
• 10-Year Government  Bond Yield: 7 percent
• Indonesian Crude Oil Price: US$ 82 per barrel
• Oil Production: 605,000 barrels per day
• Gas Production: 1.005 million barrels of oil equivalent per day

Development targets and indicators for 2025 include:

• Poverty Rate: 7-8 percent
• Extreme Poverty Rate: 0 percent
• Open Unemployment Rate: 4.5-5 percent
• Gini Ratio: 0.379-0.382
• Human Capital Index: 0.56
• Farmer Exchange Rate (NTP): 115-120
• Fisherman Exchange Rate (NTN): 105-108