Free meal for kids, health check-ups for all: Indonesian parliament passes President-elect Prabowo’s budget

The Indonesian parliament, on Thursday, approved President-elect Prabowo Subianto’s maiden budget for 2025, with spending set at 3,621.3 trillion rupiah ($237 billion). This will help Prabowo launch his administration and fulfill his growth ambitions next month.

Prabowo will start his five-year term on Oct. 20.

Indonesia’s 2024 budget was passed into law on at a plenary meeting on Thursday.

Details of Prabowo Subianto’s budget passed by Indonesia parliament

1 - The lawmakers have passed the budget with state spending set at 3,621 trillion rupiah to support an economic growth target of 5.2 per cent, a slight increase from 2024’s forecast of 5.1 per cent.

2 - The fiscal deficit is projected to be 2.53 per cent of gross domestic product (GDP), narrowing from the 2.7 per cent deficit estimated for this year.

3 - State revenue is estimated at 3,005.1 trillion rupiah, on the back of a 14 per cent increase in tax collection from this year’s outlook.

4 - To boost non-tax receipts and pare crude imports next year, the oil lifting target has been raised to 605,000 barrels per day.

5 - Average bond yield target has been lowered to 7 per cent from 7.1 per cent earlier.

6 - Keeping in mind the external risks in the coming year, the Indonesian government has set a stronger assumption for rupiah to average at 16,000 per US dollar, from the previous estimate of 16,100.

7 - The Indonesia’s budget also included Prabowo’s flagship programmes including free nutritious meals for children which will cost 71 trillion rupiah, free health check-ups, the renovation of schools and building of hospitals, and food security initiatives.

With inputs from agencies.