Ministry of Finance Budget Ceiling in 2025 of IDR 53 Trillion”/>
Commission XI of the Indonesian House of Representatives approved the proposed budget ceiling of the Ministry of Finance in 2025 of Rp53.195 trillion. The funds consist of an allocation for Public Service Agencies (BLU) under the Ministry of Finance of Rp10.377 trillion and the use of state financial management institutions of Rp42.818 trillion.
“Commission XI approved the budget ceiling of the Ministry of Finance in the Draft State Revenue and Expenditure Budget for the 2025 fiscal year of IDR 53.195 trillion,” said Deputy Chairman of Commission XI of the DPR, Dolfie OFP, when reading the conclusion of a working meeting with the Ministry of Finance, Monday (9/9).
The budget approval was followed by a request from parliament to the Ministry of Finance to be able to implement efforts, policies, and strengthening of programs and activities that were proposed and agreed upon together.
In addition, Commission XI also asked the state treasurer to strengthen and sharpen the budget preparation guidelines, implementation guidelines and accountability of each ministry/institution (K/L). This is intended to create a logical framework that explains the relationship between budget allocation and targets in achieving national priority programs.
“Logical framework “or we hope that the logical framework can be implemented in the next APBN or for the 2026 APBN,” said Dolfie.
On the same occasion, Finance Minister Sri Mulyani Indrawati said the proposed budget for next year will be used by maintaining budget discipline. She detailed that the Rp42.818 trillion ceiling allocation for the Ministry of Finance will be used to run five programs and activities.
Also read: Minister of Finance Sri Mulyani: Social Assistance is an Instrument in the State Budget
The five programs are, first, the fiscal policy program with a budget ceiling of Rp59.19 billion. Second, the state revenue management program of Rp2.86 trillion. Third, the management of state expenditure of Rp45.45 billion. Fourth, the management of treasury, state assets, and risk of Rp238.139 billion. Fifth, the management support program of Rp40.089 trillion.
“So for the Ministry of Finance, there are 4 programs plus 1 dukman (management support), divided into 5 programs. Dukman is very large, but we have conveyed which is attribution and which dukman is to support all functions of the Ministry of Finance,” explained Sri Mulyani.
Meanwhile, the budget ceiling of Rp10.377 trillion for BLU will be allocated to seven agencies. The BLU with the largest budget next year is the Education Fund Management Institute (LPDP) at Rp3.93 trillion and the Palm Oil Plantation Fund Management Agency (BPDPKS) at Rp6.06 trillion.
Also read: 2024 State Budget Deficit Estimated to Exceed Target
Meanwhile, the other five BLUs are the Environmental Fund Management Agency (BPDLH) IDR 69.60 billion, the International Development Cooperation Fund Institution (LDKPI) IDR 43.01 billion, PKN STAN IDR 15.02 billion, the State Asset Management Institution (LMAN) IDR 163.47 billion, and the Government Investment Center (PIP) IDR 95.64 billion.
“So the two largest are LPDP and BPDPKS. LPDP operational endowment fund finances education, training, research from various ministries/agencies. BPDPKS for oil palm rejuvenation and biodiesel programs,” explained Sri Mulyani.
Meanwhile, the source of funds comes from pure rupiah of Rp42.78 trillion, Non-Tax State Revenue (PNBP) of Rp21.76 billion, grants of Rp7.24 billion, and BLU of Rp10.377 trillion. (Z-11)
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Table of Contents
Indonesia’s 2025 Budget: A Focus on Fiscal Discipline and Education
The Indonesian government has proposed a 2025 budget that targets a narrower deficit and prioritizes education and fiscal discipline. According to recent reports, the proposed budget aims to reduce the fiscal deficit to 2.53% of GDP, down from 2.7% in 2024 [[1]]. This is a significant step towards maintaining budget discipline and ensuring long-term economic stability.
The total spending for 2025 is proposed to be around $230 billion, a 6% increase from 2024 [[1]]. The revenue target is set at 7% higher than the previous year, indicating a focus on increasing government revenue to support the country’s development goals.
One of the key areas of focus in the 2025 budget is education. The National Indicative Budget 2025 has allocated an 8% increase in the indicative budget for education [[2]]. This is a significant boost to the education sector, which is critical for developing the country’s human capital and driving long-term economic growth.
The budget approval process has also seen the Ministry of Finance’s budget ceiling approved at Rp53.195 trillion [[3]]. This includes an allocation of Rp10.377 trillion for Public Service Agencies (BLU) under the Ministry of Finance and Rp42.818 trillion for state financial management institutions.
Finance Minister Sri Mulyani Indrawati has emphasized the importance of maintaining budget discipline in the proposed budget. The five programs and activities under the Ministry of Finance’s budget allocation include fiscal policy, state revenue management, management of state expenditure, management of treasury, state assets, and risk, and management support [[3]].
The education sector is a significant beneficiary of the 2025 budget, with the Education Fund Management Institute (LPDP) and the Palm Oil Plantation Fund Management Agency (BPDPKS) receiving the largest allocations among the seven BLUs under the Ministry of Finance [[3]].
The focus on education and fiscal discipline in the 2025 budget is a positive step towards achieving Indonesia’s long-term development goals. As the country continues to navigate the challenges of the global economy, a responsible and sustainable approach to budget management is essential for ensuring economic stability and driving growth.
References:
[1] Reuters: Indonesia proposes 2025 budget targeting narrower deficit
[2] British Council: Indonesia education budget 2025
[3] Nikkei Asia: Indonesia forecasts smaller budget deficit of 2.53% of GDP in 2025
Indonesia’s 2025 State Budget: A Comprehensive Overview
The Indonesian government has announced its 2025 State Budget (APBN), allocating a massive Rp3,613.1 trillion (US$229.6 billion) for government expenditure [1]. This budget aims to support sustainable economic growth, maintain price stability, and improve people’s welfare, as expressed by President Joko Widodo [2].
Breakdown of the 2025 State Budget
The 2025 State Budget consists of two main allocations: Rp10.377 trillion for Public Service Agencies (BLU) under the Ministry of Finance, and Rp42.818 trillion for the use of state financial management institutions. Commission XI of the Indonesian House of Representatives has approved this budget ceiling, which will be used to implement various programs and activities [query].
Five Key Programs and Activities
Finance Minister Sri Mulyani Indrawati has outlined five key programs and activities that will be funded by the Ministry of Finance’s allocation. These programs are:
- Fiscal policy program with a budget ceiling of Rp59.19 billion.
- State revenue management program of Rp2.86 trillion.
- Management of state expenditure of Rp45.45 billion.
- Management of treasury, state assets, and risk of Rp238.139 billion.
- Management support program of Rp40.089 trillion.
Budget Discipline and Logical Framework
To ensure the effective use of the budget, the government has emphasized the need for budget discipline and a logical framework that explains the relationship between budget allocation and targets in achieving national priority programs. This framework is expected to be implemented in the next APBN or for the 2026 APBN [query].
Value-Added Tax (VAT) Increase
To support the 2025 State Budget, the government plans to raise the value-added tax (VAT) by a percentage point to 12% starting next year [3]. This move is expected to generate additional revenue for the government.
Conclusion
Indonesia’s 2025 State Budget is a comprehensive plan to support the country’s economic growth and social development. The budget allocation will be used to implement various programs and activities, emphasizing budget discipline and a logical framework to ensure effective use of resources. As the government prepares to implement this budget, it is essential to monitor its progress and assess its impact on the economy and society.