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Home GovAct

Finance Minister: Indonesian economy remains stable amidst global and national dynamics

Finance Minister said that the 2025 Macro Economic Framework and Fiscal Policy Principles are designed to guide the government in facing diverse challenges.

Haris Sunandar by Haris Sunandar
May 24, 2024
in GovAct
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Finance Minister Sri Mulyani Indrawati presented the Macro Economic Framework and Fiscal Policy Principles (KEM-PPKF) to the House of Representatives in Jakarta (05/20). Credit: Ministry of Finance

Finance Minister Sri Mulyani Indrawati presented the Macro Economic Framework and Fiscal Policy Principles (KEM-PPKF) to the House of Representatives in Jakarta (05/20). Credit: Ministry of Finance

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Heaptalk, Jakarta — Finance Minister Sri Mulyani Indrawati presented the Macro Economic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2025 Draft State Budget (RAPBN) during the 17th plenary session of the Indonesian House of Representatives (DPR RI) on Monday (05/20) in Jakarta.

In her address, the Minister stated that the 2025 Macro Economic Framework and Fiscal Policy Principles are designed to guide the government facing diverse challenges and as a strong foundation for sustainable development towards Golden Indonesia 2045.

“The ability to consistently address structural issues while handling cyclical volatility will strengthen the foundation and determine the progress of a nation. The RPJPN, RPJMN, RKP, and KEM-PPKF form a system that creates a tradition of governance that is continuous yet adaptive and responsive to changes and improvements,” Sri Mulyani explained.

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World Ai Jakarta 2025

Global and national dynamics have created complex and challenging situations. Over the past ten years, the Minister revealed that Indonesia has faced numerous shocks, including geopolitical tensions, commodity price volatility, the Covid-19 pandemic, and climate change, resulting in significant humanitarian, economic, and financial impacts.

Nevertheless, Indonesia has responded effectively through solid cooperation between the Government, the DPR, and the public, thereby maintaining economic stability. She said, “Thanks to the synergy, collaboration, and strong support from the DPR, various emergency measures to address the pandemic and save the national economy were implemented quickly and effectively.”

Furthermore, Indonesia’s economic resilience has been maintained despite facing various shocks. This success is primarily attributed to responsive and credible fiscal policies, especially during the pandemic, which helped limit Indonesia’s economic contraction to -2.1%, much better than neighboring countries such as the Philippines, Thailand, Malaysia, and Singapore.

“Effective, prudent, and credible fiscal policy management has made Indonesia one of the few countries in the world with significantly improved fiscal conditions post-pandemic,” she stated.

Additionally, Sri Mulyani highlighted Indonesia’s economic growth, infrastructure development, human resource quality, and public welfare, all of which have shown significant progress. She remarked, “Strengthening these three aspects is a strategic step to build a strong economic foundation for sustainable growth in the future.”

With optimism, hard work, and a shared commitment to maintaining economic stability and pioneering policy breakthroughs, the Minister hopes to drive higher and better quality economic growth, projected to be 5.1% to 5.5% in 2025. This growth is expected to be supported by controlled inflation, continued and expanded resources downstream, the development of the electric vehicle industry, and digitalization, backed by improved investment climate and human resource quality. “This growth rate is expected to form a strong foundation for higher growth in the coming years,” she concluded.

Tags: indonesia state budgetminister of finance sri mulyani

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