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Prabowo Gets to Spend $230 Billion on First Year in Office

Jayanty Nada Shofa
August 16, 2024 | 4:10 pm
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President Joko
President Joko "Jokowi" Widodo and his successor Prabowo Subianto converse at the parliamentary building in Jakarta on Aug. 16, 2024. Jokowi has just delivered his final state of the nation address at the time. (Antara Photo/Aditya Pradana Putra)

Jakarta. President Joko “Jokowi” Widodo has proposed a government budget of Rp 3,613.1 trillion (around $230 billion) in 2025, which will be his successor Prabowo Subianto’s first year in office. 

About Rp 2,693.2 trillion of the planned spending will be central government expenditure. The archipelagic Indonesia will transfer around Rp 919.9 trillion to the sub-national governments. Jokowi said these transfers sought to narrow the gap between the different regions in the country.

“We will allocate Rp 722.6 trillion for education. The money will go to improving school children's nutritional status and renovating schools,” Jokowi said in his annual budget speech to the parliament on Friday. 

The education budget will also cover research and scholarship programs. 

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Jokowi proposed to allot 5.5 percent of the state expenditure --around Rp 197.8 trillion-- for the health sector. The incoming government will use it to finance efforts to bring down the national stunting rate, among others. 

The drafted infrastructure development budget for Prabowo’s first year stands at around Rp 400.3 trillion with some of the money set to fund the capital relocation program. A part of the budget will go into building connectivity and educational infrastructure. Jokowi did not say how much would the upcoming government set aside to speed up the development of Indonesia’s planned future capital Nusantara. 

“We are putting forward a food security budget of Rp 124.4 trillion. We will direct the funds into boosting [agricultural] productivity, keeping the food supply and food prices in check, improving the agricultural distribution chain, while also enhancing the financing access for our farmers,” Jokowi said. 

Jokowi tabled a social protection budget of Rp 504.7 trillion for 2025.

Prabowo’s inauguration ceremony is slated for Oct. 20. Earlier that day, Jokowi said that he looked forward to passing the leadership baton to Prabowo. While Prabowo promised the continuity of Jokowi’s programs, the ex-army general is synonymous with his plan of feeding all Indonesian school children free lunches. 

“The free nutritious meal program should improve children’s nutritional status, while also empowering the micro, small and medium enterprises [MSMEs]. It should also give a boost to the small community’s economy in the rural areas,” Jokowi said.

Jokowi told the meeting that the government would implement the school meal program in phases and in an accountable manner.

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