Indonesia is anticipated to generate Rp2,996.9 trillion (US$190.5 billion) in 2025 state revenue, consisting of tax revenue at Rp2,490.9 trillion (US$158 billion) and non-tax state revenue (PNBP) at Rp505.4 trillion (US$32 billion, while maintaining the investment climate and environmental sustainability as well as accessibility of public services.
“Tax reforms will continue to be implemented through the expansion of tax bases and the enhancement of compliance of taxpayers, improvement of governance and tax administration, as well as the granting of directed and measured tax incentives,” President Joko “Jokowi” Widodo said while addressing the State Budget for 2025 Fiscal Year and its Financial Note at the Parliament on Friday, August 16, 2024.
Efforts to increase non-tax state revenue continue to be made through the utilization of technology for planning and reporting; strengthened governance and supervision; optimization of state asset and natural resource management; as well as encouraging service innovation.
“The budget deficit in 2025 is set at 2.53 percent of the GDP or Rp616.2 trillion (US$39 billion) sourced from the utilization of prudent and safe financing sources,” Jokowi cited.
The government continues to increase the effectiveness of investment financing, encourage policy of innovative financing with the Public-Private Partnership (PPP) scheme, including the strengthening of the Indonesia Investment Authority (INA), and Special Mission Vehicle (SMV), as well as the enhancement of financing access for lower-income people, MSMEs, and ultra-micro businesses.
Open employment rate in 2025 is expected to be curbed in the range of 4.5 percent to 5 percent. Poverty rate can be curbed in the range of 7 percent to 8 percent. Gini ratio is kept in the range of 0.379-0.382. Human Capital Index is set at the level of 0.56. Moreover, Farmers Exchange Rate is expected to increase to 115-120. Fishermen Exchange Rate is maintained in the range of 105-108.
