Indonesia’s parliament approves Jokowi’s 3,325.1 trillion rupiah budget

INDONESIA’S parliament on Thursday (Sep 21) approved the government’s 2024 budget expenditure of 3,325.1 trillion rupiah (S$295.3 million) to support economic growth and stable prices amid global macroeconomic challenges.

President Joko Widodo’s budget for 2024, his final year in office, is 64.5 per cent bigger than last year’s. It includes more energy subsidies to make up for escalating oil prices.

The fiscal deficit is expected to be 2.29 per cent of gross domestic product, which is roughly similar to the 2.3 per cent deficit for 2023. Economic growth for 2024 is, however, expected to a touch higher, at 5.2 per cent.

Finance Minister Sri Mulyani Indrawati highlighted the impact that rising global crude oil prices will have on the budget next year. “Global uncertainties will still be with us, so the state budget will need to continue to protect the people from any shocks” she said.

She added that the budget reflects the government’s efforts to transform the economy and protect Indonesians from future economic shocks.

Several key development targets for the 2024 budget include reducing the unemployment rate from the current 6 per cent to 5 per cent, reducing the poverty rate from 9 per cent to 6.5-7.5 per cent, and increasing Indonesia’s Human Development Index from 72.9 to 73.99.