Airlangga: President maintains debt ratio at 40 percent and deficit at 3 percent
Jakarta (ANTARA) - Coordinating Minister for the Economy Airlangga Hartarto stated that President Prabowo Subianto emphasised the government’s commitment to maintaining the debt ratio at 40 percent, while keeping the state budget deficit at 3 percent.
This commitment was conveyed by President Prabowo during a Government Working Meeting attended by approximately 800 bureaucrats, directors of state-owned enterprises, and high-ranking officials from the TNI, Police, and Prosecutor’s Office at the Presidential Palace Complex in Jakarta on Wednesday (8/4).
“The President committed to keeping the debt ratio at 40 percent, even though the law allows up to 60 percent (of GDP). Similarly, the deficit will be maintained at 3 percent. This will be upheld until the end of the year,” Airlangga said during a press conference after the meeting.
The law referenced by Airlangga is Law No. 17 of 2003 on State Finances.
President Prabowo gathered ministers to echelon I officials from ministries and agencies in the central courtyard of the Palace to deliver direct briefings, directives, and to hear reports from several ministers on strategic sectors. The meeting lasted approximately 4 hours.
During the meeting, Airlangga explained several indicators showing Indonesia’s economy in good condition, reported to the President, as reflected in the consumer confidence index, manufacturing purchasing managers’ index (PMI), foreign exchange reserves, and balance of payments.
Airlangga also noted that tax revenues are growing.
“From the Minister of Finance, it was reported that up to March, tax revenue increased by 14.3 percent or Rp462.7 trillion, and manufacturing is also expansive,” he revealed.
Therefore, he continued, the government is optimistic that economic growth in the first quarter of 2025 can reach around 5.5 percent.
“The government still sees economic growth in the first quarter as good, still able to achieve (the target); the Minister of Finance also stated it will be greater than or equal to 5.5 percent,” Airlangga said.
On the same occasion, the Government Working Meeting also highlighted the national food security situation, which shows a positive trend. Airlangga said Bulog’s rice stocks have reached 4.6 million tons.
“Our food security is also relatively strong. Rice production in 2025 (at) 34.7 million tons, and Bulog stocks at 4.6 million tons,” he stated.
Despite these achievements, Airlangga emphasised that the government continues to prepare various strategic policies to maintain the momentum of growth and economic stability, one of which is the implementation of the B50 biodiesel programme, which is believed to enhance state budget resilience.
“We have agreed that from 1 July, B50, which will increase budget resilience from savings of Rp48 trillion,” he said.
The Government Working Meeting was open for the first approximately one hour, then proceeded in closed session.