Optimizing the 2025 State Budget: Will Development Targets be Achieved or Just Empty Promises?

Jakarta, INTI - Yesterday morning, Finance Minister Sri Mulyani Indrawati returned to the DPR RI Complex to attend a working meeting with Commission XI in Jakarta. During the meeting, Sri Mulyani, alongside high-ranking officials including Minister of National Development Planning/Head of Bappenas Suharso Monoarfa, Bank Indonesia Governor Perry Warjiyo, OJK Chairman Mahendra Siregar, and Acting Head of BPS Amalia Adininggar Widyasanti, discussed and agreed upon the Basic Economic Assumptions, Development Targets, and Development Indicators for the 2025 State Budget (RAPBN).

The main focus of this discussion was how the 2025 State Budget could serve as a tool to achieve national development targets. The agreed targets cover various aspects, from poverty reduction to improving human capital quality. However, the question remains: are these targets realistic and achievable, or are they merely lofty aspirations?

Chasing Poverty Reduction and Unemployment

One of the primary targets in the 2025 State Budget is to reduce the poverty rate to 7.0-8.0% and eliminate extreme poverty. Additionally, the government aims to keep the open unemployment rate between 4.5-5.0%. This is a significant challenge, given the ongoing global economic uncertainties.

Sri Mulyani emphasized that achieving these targets requires strong and targeted government interventions, particularly through regional development programs and enhanced regional transfer policies. Inclusive and equitable economic growth is crucial to ensure that all communities, both urban and rural, benefit from these policies.

However, real-world implementation often presents challenges. Ineffective policy execution and lack of oversight can hinder the achievement of these targets. Therefore, the government must ensure that every program and policy is focused on achieving the established development goals.

Social Inequality Indicators and Human Capital Quality

In addition to poverty and unemployment reduction, the 2025 State Budget aims to improve social inequality indicators, such as the Gini Ratio, which is targeted to be between 0.379-0.382. This reflects the government’s commitment to reducing income inequality.

The government is also committed to increasing the Human Capital Index to 0.56. This index measures the quality of education, health, and living standards, and is crucial for creating a competitive and skilled workforce. Improving this index is a priority for the 2025 State Budget, with the goal of developing a globally competitive human capital.

The Role of Taxation and Fiscal Policy

In the taxation sector, the government aims to increase the tax ratio to support development targets. Optimal tax revenue will provide more fiscal space for funding planned development programs.

Sri Mulyani also announced the introduction of a Sugar-Sweetened Beverage Tax as part of efforts to boost state revenue and improve public health. However, this policy requires DPR RI approval and close monitoring to ensure its effectiveness.

Between Hopes and Reality

Although the development targets set in the 2025 State Budget are ambitious, real-world challenges are often the greatest obstacles. The government must work diligently to ensure that these targets are met and do not remain mere promises.

Sri Mulyani hopes that with strong collaboration between the government and the DPR, the 2025 State Budget will effectively achieve its development goals. The focus must be on translating ambitious targets into tangible results for the benefit of the Indonesian people.