"Here are the budget items and the focus of government programs in the 2025 State Budget (RAPBN)."
"Dream - The government will spend a budget of Rp3,613.1 trillion throughout the year 2025. The largest allocation from the thousands of trillion rupiah fund will be directed towards education programs. President Joko Widodo (Jokowi), while delivering the Government's Explanatory Speech on the Draft Law on the State Budget (APBN) for the Fiscal Year 2025 along with the Financial Note in the Plenary Meeting of the Indonesian House of Representatives (DPR RI) on Friday, August 16, 2024, stated that government spending will be kept truly efficient and productive, so that in addition to supporting the government's priority programs, it can also generate strong multiplier effects on the economy."
"The government, the President continued, will also enhance flexible financing innovations with high prudence through Government and Business Entity Cooperation (KPBU), strengthening the role of the Investment Management Institution, and deepening the financial market. The portion of government spending in the architecture of the 2025 State Budget (RAPBN) is dominated by expenditures for central government spending amounting to Rp2,693.2 trillion and Transfers to regions amounting to Rp919.9 trillion."
The largest allocation of government spending next year will be focused on the education sector, which is budgeted at Rp722.6 trillion. This fund will be allocated for improving the nutrition of school children, renovating schools, and developing leading schools. The education budget is also for expanding scholarship programs, promoting culture, strengthening world-class universities, and developing research.
"Besides education, the other position with the largest allocation is social protection amounting to Rp504.7 trillion. This budget is used to reduce the burden on poor and vulnerable communities and to accelerate poverty alleviation. Meanwhile, the health budget is planned to be Rp197.8 trillion, or 5.5 percent of state spending. This budget is intended for improving the quality and affordability of services, accelerating the reduction of stunting and infectious diseases such as tuberculosis, as well as providing free health screenings."
The Jokowi-Ma'ruf Amin government, in the preparation of the last draft of the state budget (RAPBN) during its term, also allocated a food security budget planned at Rp124.4 trillion. This hundreds of trillion rupiah fund will be used to support productivity improvement, maintain the availability and affordability of food prices, improve the distribution chain of agricultural products, and enhance access to financing for farmers.
"For infrastructure development, the 2025 State Budget (RAPBN) allocates funds of Rp400.3 trillion. This budget is primarily for educational and health infrastructure, connectivity infrastructure, food and energy infrastructure, as well as the sustainability of the IKN development."
"In addition to the central government spending, the 2025 State Budget (RAPBN) also allocates funds for regional transfer budgets planned at Rp919.9 trillion. This budget allocation is smaller than the education and social protection sectors in the central government spending allocation. "The increase in Regional Original Revenue must still pay attention to the investment climate, ease of doing business, and community welfare, as well as strengthen access and quality of public services," said Jokowi."
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