Agreement reached on Indonesia’s 2025 budget assumptions set for parliament vote Reuters

JAKARTA (Reuters) – An Indonesian parliamentary committee and the government have reached an agreement on key economic assumptions for 2025 for the new administration led by Prabowo Subianto, which takes office next month, the budget committee chairman said on Wednesday.

Most of the budget assumptions in incumbent President Joko Widodo’s initial 2025 proposal have been approved, except for the rupiah exchange rate against the dollar, yield and the oil lift target, commission chairman Said Abdullah told Reuters.

A wider parliamentary vote is needed to approve the 2025 budget, likely later this month or in October, but committee approval is usually a no-brainer.

The assumption for the rupee in 2025 was slightly strengthened to 16,000 per dollar from 16,100. The target for the oil lift was raised to 605,000 barrels per day (bpd) from 600,000 bpd.

The government and the committee also agreed to cut the 10-year bond yield target to 7% from 7.1%. The changes were made to better reflect current economic conditions and future prospects, the government explained.

The remaining key budgetary assumptions remained unchanged, with the GDP growth target maintained at 5.2% and inflation at 2.5%.

The forecast for the average price of Indonesian crude oil is US$82 per barrel, and the increase was seen at 1.005 million barrels of oil equivalent per day (BOEPD).

Revenue was tentatively agreed at 3,005.13 trillion rupees ($194 billion), while expenditure was seen at 3,621.31 trillion rupees. The budget deficit forecast for 2025 was kept at 2.53% of GDP, a reduction from the estimated gap of 2.7% in 2024.

($1 = 15,475 rupees)