The Indonesian parliamentary committee and the government have reached a consensus on key economic assumptions for 2025, paving the way for the new administration under Prabowo Subianto. The agreement, announced by the budget committee's chair, includes adjustments to the original proposal put forward by outgoing President Joko Widodo.
Most of the budget assumptions from Widodo's proposal have been approved, with the exception of the rupiah exchange rate, bond yield, and oil-lifting targets. The rupiah is expected to strengthen slightly to 16,000 per dollar, while the oil lifting target has been raised to 605,000 barrels per day. The 10-year bond yield target has been lowered to 7% to align with current economic conditions.
Other key budget assumptions, such as GDP growth target, inflation rate, and revenue and spending figures, remain unchanged. The deficit forecast for 2025 stands at 2.53% of GDP, showing a narrowing gap compared to the previous year.
Overall, the economic outlook for Indonesia in 2025 appears positive, with adjustments made to reflect current economic conditions and future prospects. The agreement between the government and parliamentary committee sets the stage for a smooth transition to the new administration.
Analysis: The agreement on key economic assumptions for 2025 in Indonesia is a significant development that provides clarity and stability for investors and businesses operating in the country. The adjustments made to the budget assumptions show a commitment to managing the economy effectively and ensuring sustainable growth. As the new administration takes office, these agreed-upon assumptions will serve as a foundation for economic policy-making and planning, helping to guide decision-making and investment strategies. Overall, this news is a positive indicator for the Indonesian economy and can potentially impact various sectors and industries in the country.
