Indonesia’s 2025 State Budget (RAPBN) is designed to be a healthy, accelerative, and supportive. It aims to propel economic growth while reinforcing key national development priorities. The country’s projected revenue in 2025 stands at IDR 2,996.9 trillion. This target is expected to be achieved through the implementation of core tax strategies, improvements in service delivery via digital technologies, enforcement of the Tax Regulation Harmonization Law (UU HPP), as well as strengthening human resource capacity and institutional governance.

In terms of expenditure, the state plans to allocate IDR 3,613.1 trillion for various priority areas. These include improving the quality of human resources through nutritious food, access to quality education and healthcare, as well as infrastructure development, food and energy security, enhanced legal enforcement, and national defense. The budget deficit, projected at IDR 616.2 trillion or 2.53% of the Gross Domestic Product (GDP), will be maintained at a prudent level—within the country’s acceptable risk threshold. The financing approach remains sound, aimed at preserving fiscal health while supporting Indonesia’s sustainable development goals.

This overview was presented by Dr. Malik Cahyadin, S.E., M.Si., Ph.D., a lecturer from the Faculty of Economics and Business at Universitas Sebelas Maret (FEB UNS), during the “Indonesia Economic Outlook 2025” forum held on Tuesday, December 17, 2024. The event, which focused on the national outlook as well as the economic prospects of East Java—particularly the former Kediri Residency—was hosted by PT. Tulungagung Intermedia and attended by a number of journalists and stakeholders.

Dr. Cahyadin explained that the direction of Indonesia’s revenue policy in 2025 will emphasize maintaining the momentum of tax reform while delivering more targeted and measurable incentives to accelerate economic transformation. At the same time, the government is committed to improving taxpayer compliance and expanding the tax base. Efforts will also be made to align Indonesia’s tax system with both its economic structure and international tax standards. Additionally, reforms in the management of natural resources and state assets will continue, accompanied by innovation in public services and stronger governance practices.

Regarding government spending, the 2025 policy framework encourages a more efficient use of non-priority funds, especially operational expenses, which will be redirected toward more productive sectors. Capital expenditure will be strengthened to support the country’s economic transformation. Reforms in subsidy and social assistance programs are planned to ensure they are more targeted and equitable. Furthermore, the implementation of the Law on Fiscal Relations between the Central and Regional Governments (UU HKPD) will be optimized to create better synergy and policy alignment across all levels of government.

On the financing side, the 2025 strategy is built on principles of prudence, innovation, and sustainability. It will support key areas of economic transformation such as digital infrastructure, energy, connectivity, and the development of industrial and economic zones. The government will also actively promote more widespread and sustainable public-private partnerships. Strengthening financial markets remains a priority, alongside enhancing the roles of State-Owned Enterprises (BUMN), Public Service Agencies (BLU), Special Mission Vehicles (SMV), and the Indonesia Investment Authority (INA), the nation’s sovereign wealth fund.

Aside from the national outlook, Dr. Cahyadin also shared insights specific to East Java, including strategies and growth potential for the former Kediri Residency region. His insights provided valuable context for local development strategies tailored to a room of attentive participants—many of whom were journalists eager to grasp Indonesia’s economic trajectory for the coming year.