President Jokowi Confirms Importance of Structural Reforms, Inclusivity in 2025 State Budget Bill

President Joko Widodo and the Speaker of the House of Representatives Puan Maharani, after the Delivery of the Address of the President of the Republic of Indonesia on the Presentation of the Bill on the State Budget for the 2025 Fiscal Year and Its Financial Note before the Plenary Session of the Opening Session Period I of the House of Representatives of the Republic of Indonesia 2024-2025 at Gedung Nusantara MPR/DPR, in Jakarta, on Friday (16/08) (Photo: YouTube of the Bureau for Press and Media of Presidential Secretariat)

President Joko “Jokowi” Widodo emphasized the importance of continuing structural reforms to maintain healthy and credible fiscal policy to ensure fiscal policy remains strong and reliable.

“We must continue structural reforms to maintain healthy and credible fiscal policy and enhance collaboration of fiscal, monetary, and finance. Revenue, spending, and financing must be designed to be flexible and provide fiscal space to anticipate uncertainties, and support development sustainability during government transition period,” the President said in his Address on the Presentation of the Bill on the State Budget for the 2025 Fiscal Year and Its Financial Note before the Plenary Session of the House of Representatives of the Republic of Indonesia at Gedung Nusantara MPR/DPR, in Jakarta, on Friday (16/08).

The short-term strategy would be focused on accelerating economic growth and promoting equality at subnational levels. One of the main programs was “Free Nutritious Meals (MBG)”. The President underlined the importance of MBG program implementation in stages, in line with technical and organizational readiness and accountable governance.

“Free Nutritious Meals program is geared at boosting children’s nutrition while empowering MSMEs and improving the economy of lower-income people in the regions,” the President highlighted.

Furthermore, the program of acceleration of school renovation and development of a conducive education ecosystem became a main focus to increase quality and “link and match” between education and businesses. Then, it was also important to encourage productivity as well as maintain supply and affordability of food prices.

“Conducive education ecosystem must be also developed. Then, encouraging productivity, maintaining supply, and affordability of food prices need strengthened food estate and irrigation networks,” the President said.

The President further explained that the mid-term strategy would be focused on accelerating economic transformation towards inclusive and sustainable economic growth through some important steps, including strengthening human capital, downstreaming and green transformation, enhancing inclusivity, infrastructure development, and bolstering implementation of bureaucratic reform. He also emphasized the importance of strengthening defense and security, food and energy self-sufficiency, as well as enforcement of human rights.

To conclude his address, the President emphasized that the 2025 State Budget Bill would be focused on revenue optimization, quality spending, and innovative financing. One of the strategic steps is tax ratio optimization to strengthen fiscal space while maintaining the investment climate and protecting people’s purchasing power.

“The 2025 State Budget Bill puts emphasis on revenue optimization, quality spending, and innovative financing. The tax ratio will continue to be optimized in order to strengthen fiscal space,” the President remarked. (ECH/ABD) (GA/MUR)