President Prabowo Subianto has officially updated Indonesia’s 2025 Government Work Plan (RKP) with Presidential Regulation (Peraturan Presiden/Perpres) Number 79 of 2025, replacing the previous regulation (Perpres Number 109 of 2024). The revision adjusts several macroeconomic assumptions: the economic growth target is fixed at 5.3% (narrowed from the prior 5.3-5.6%), and the rupiah’s exchange rate assumption against the US dollar is raised to IDR 16,000-16,900 from the earlier IDR 15,300-15,900. Inflation target remains unchanged at around 2.5% ± 1%. Supporting these projections, the government also plans a budget deficit equal to 2.53% of GDP, with a primary balance of 0.26% of GDP.
In addition to the adjusted growth and exchange rate targets, the government projects its debt-to-GDP ratio to reach 39.15% for 2025, compared to an earlier range of about 37.82-38.71%. These changes are influenced by developments in the rupiah exchange rate up to April 2025 and the realities faced when preparing the 2025 State Budget (APBN). The revised targets indicate a more cautious stance given macroeconomic volatility, balancing the desire for growth with maintaining fiscal credibility and macro stability.
