The Ministry of Finance is drafting the budget ceiling for 2025, with significant amount of budget of Rp155.9 trillion (US$9.6 billion) allocated for the Ministry of Defense.
Based on the 2025 Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF) document cited on Monday, July 22, 2024, the largest portion of the Defense Ministry’s budget, Rp79.27 trillion, will be allocated for management support. Another significant portion, Rp65.49 trillion, will be used for the modernization of defense equipment and infrastructure.
The remaining allocations for the Defense Ministry in 2025 include Rp3.38 trillion for TNI operational duties, Rp5.67 trillion for soldier professionalism and welfare programs, Rp24.7 billion for defense policy and regulation programs, and Rp571.1 billion for defense resource development programs.
Additionally, Rp1.55 trillion is earmarked for research, industry, and higher defense education programs.
Previously, Finance Minister Sri Mulyani Indrawati said that the drafting of the 2025 State Budget (RAPBN) is underway, with the Ministry of Finance ensuring the process aligns with the KEM PPKF.
The details include an APBN deficit between 2.29-2.82 percent, economic growth of 5.1-5.5 percent, inflation of 1.5-3.5 percent, SBN interest rates between 6.9-7.2 percent, and an exchange rate of Rp15,300-15,900 per US$.
Sri Mulyani dismissed concerns about poor communication with President-elect Prabowo Subianto, asserting that the communication regarding the transition of the 2025 State Budget is progressing smoothly.
“In the political process, I report to President Joko Widodo and the President-elect. Communication has been going well,” Sri Mulyani told a press conference at the Ministry of Finance in Jakarta, on Thursday, July 18, 2024.
