Jakarta. In response to President Joko “Jokowi” Widodo's annual address to the House of Representatives on Wednesday, the government has committed to allocating a budget of Rp 52 trillion ($3.4 billion) for salary increases for civil servants, police, and military service members.

President Jokowi’s administration has pledged an 8 percent salary increase, along with an additional 12 percent rise for government-funded pensions.

The allocated amount encompasses Rp 17 trillion for pension increases, Rp 9 trillion for salary hikes among central government employees, and Rp 25 trillion for salary increases among regional government employees.

"Pensioners will experience a larger increase due to the absence of allowances," Finance Minister Sri Mulyani Indrawati said.

For the upcoming year, the government has proposed a total expenditure of Rp 3,304.1 trillion (equivalent to around $216 billion) and expected revenue of Rp 2,781.3 trillion.

Indonesia aims to maintain the budget deficit at a level not exceeding 2.29 percent of the country's gross domestic product (GDP). In addition to the planned salary increases funded by the government, there will be additional expenditures related to legislative and presidential elections next year, projected to amount to Rp 76 trillion.