Presenting Deputy Minister Suahasil Nazara, BRIDS Breakdown 2025 Draft State Budget
Jakarta, September 11, 2024 – BRI Danareksa Sekuritas (BRIDS) held an investor gathering event entitled BRIDS Roundtable with the theme "Discuss the 2025 State Budget: Indonesia's Sustainable Development Strategy" which presented the Deputy Minister of Finance of the Republic of Indonesia, Prof. Suahasil Nazara as a speaker and was attended by the Company's clients consisting of Investment Managers and Pension Funds, located at the Ritz Carlton Hotel, Jakarta.
It is known that the Government has released the 2025 State Budget Draft (RAPBN) and is currently awaiting approval from the DPR so that it can be ratified into the APBN Law. In addition, the Government has provided a foundation for creating a smooth transition by allowing integration between important initiatives of the new Government and the continuity of programs of the old government.
In his remarks, BRIDS President Director Laksono Widodo said that by presenting Prof. Suahasil Nazara, the Company is expected to be able to provide an overview and answer investor questions regarding the implementation of the 2025 RAPBN and the policies of the upcoming Government.
"Hopefully this event can answer questions that arise from future government policies, one of which is related to whether there are significant changes in spending, revenue, or macro assumptions between the Draft State Budget and the 2025 State Budget, and what are the risks that could disrupt Indonesia's fiscal stability in 2025," explained Laksono.
Deputy Minister of Finance of the Republic of Indonesia Suahasil Nazara in his presentation emphasized the role of the State Budget as a shock absorber, as shown during the COVID-19 pandemic, where the Government cannot sacrifice domestic growth for the sake of budget health. In addition, wise debt management will also be a priority for the new Government.
On that occasion, Suahasil also answered questions regarding the debt maturity profile which will increase significantly in the coming years. "Maintaining high nominal Gross Domestic Product (GDP) growth will help maintain Indonesia's debt ratio level. In addition, the Government is also focusing on reducing debt risk by reducing the debt ratio in foreign currencies and using natural hedging," said Suahasil.
In terms of budget stability and volatility, the Government believes that maintaining real GDP growth at 5% will ensure stability and reduce short-term volatility, leading to further fiscal consolidation and improved budget health
On the same occasion, Suahasil also touched on the issue of the middle class which is currently being widely discussed by the public. According to data from the Central Statistics Agency (BPS), the number of people moving towards the middle class and the middle class has increased over the past 10 years.
"The focus of development carried out by the Government over the past 10 years has been to move people from the poverty line or vulnerable to poverty, to higher groups such as the middle class and middle class," explained Suahasil.
Responding to Suahasil's presentation, Laksono said that the Company assessed that the proposed 2025 budget focuses on a smooth transition, allowing direct integration between the new government's important initiatives and agendas while ensuring the sustainability of key projects.
"It is clear that the government is aware of the challenges facing the middle class and is committed to addressing them. For the incoming government, the key is to successfully launch new flagship programs while carefully managing tax policies that affect the middle class," concluded Laksono.