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President Joko “Jokowi” Widodo is poised to deliver his last State Budget Address, a momentous occasion as he prepares to pass the baton of fiscal leadership to President-elect Prabowo Subianto. This transition marks a significant shift in Indonesia’s governance, as Jokowi’s administration finalizes a 2025 State Budget that blends his ongoing policies with Prabowo’s vision.
The upcoming budget, described as transitional, is designed to ensure economic stability as Indonesia navigates this change in leadership. It includes projections for a growth rate between 5.1% and 5.5%, inflation capped at 3.5%, and a budget deficit maintained under 3% of GDP. These figures reflect Jokowi’s commitment to fiscal prudence while accommodating Prabowo’s strategic priorities, particularly in defence and infrastructure development.
Jokowi has instructed his administration to work closely with Prabowo’s transition team to integrate the incoming president’s programs into the budget. The finance ministry, under Sri Mulyani Indrawati, is leading these efforts, emphasizing the need for continuity and stability. This collaboration aims to prevent any disruptions that could arise from the leadership change, ensuring a smooth handover of fiscal responsibilities.
The State Budget Address will not only serve as a summary of Jokowi’s fiscal legacy but also as a roadmap for Prabowo’s administration. As Prabowo prepares to take office, his economic strategies are under increased scrutiny, both domestically and internationally. The budget will likely reflect his focus on bolstering Indonesia’s defence capabilities and continuing infrastructure projects, aligning with his broader economic and national security objectives.
This transition is being closely watched by the international community, investors, and political analysts, as it signals the beginning of a new era in Indonesian politics. Jokowi’s final budget address is expected to set the tone for Prabowo’s presidency, ensuring that the nation’s development agenda continues uninterrupted under new leadership.
There is a strong emphasis on maintaining the economic momentum achieved during Jokowi’s tenure while preparing for the strategic shifts that Prabowo’s leadership will bring. This budget, therefore, represents not just a financial plan for the coming year but a critical tool in ensuring a stable and prosperous future for Indonesia.