Adil Al Hasan, Jakarta – Finance Minister Sri Mulyani Indrawati has said that the 2025 State Expenditure and Revenue Budget (APBN) faces significant challenges, not only from global economic dynamics but also from President Prabowo Subianto's new priority programs.
"The 2025 APBN implementation is very challenging due to a dynamically changing environment and also, new priorities from the President which are carried out to improve economic performance and strengthen our country's defense and resilience," Sri Mulyani explained during a working meeting with the House of Representatives' Budget Committee at the Parliament Complex in Senayan on Thursday, July 3, 2025.
These priority programs include initiatives such as free nutritious meals, school revitalization, free health check-ups, public schools, strengthening the Red and White Village Cooperative, and housing development. These programs demand substantial funding; for instance, the government has allocated Rp71 trillion for free nutritious meals in the 2025 APBN.
The projected high expenditure needs are not aligned with state revenue projections. The government estimates a budget deficit of Rp662 trillion, or approximately 2.78 percent of the gross domestic product (GDP). To cover this deficit, Sri Mulyani proposed utilizing Rp85.6 trillion from the Excess Budget Balance (SAL) in the second half of this year to the Budget Committee.
Deputy Chair of the DPR Budget Committee, Wihadi Wiyanto, acknowledged the anticipated 2025 APBN deficit. He suggested that using the SAL could be a solution, especially amid turbulent global market conditions. "We cannot continue to increase debt issuance," the Gerindra Party politician remarked.
Despite showing an increasing trend, Wihadi emphasized that state revenue still needs to be boosted to further reduce the APBN deficit. "We still have plenty of time for revenue collection. We hope for additional revenue increases," he added.
– Anastasya Lavenia contributed to the report.
Source: https://en.tempo.co/read/2024450/prabowos-programs-add-strain-to-2025-state-budget-says-sri-mulyan