Indonesia’s Fiscal Health Intact Despite Expansive Social Programs, Says Finance Minister
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JAKARTA, investortrust.id – Indonesia’s finance chief says the national budget remains secure despite the expansion of social programs, calling on the public not to worry about state finances amid growing public subsidies and welfare spending.
Minister of Finance Sri Mulyani Indrawati emphasized that the State Budget, or APBN, has sufficient fiscal space to accommodate flagship programs ranging from agricultural and energy subsidies to food assistance. Speaking during the Economic Dialogue with the President in Jakarta on Tuesday, she assured stakeholders that no overspending has occurred.
“Even with new initiatives, everything has already been financed within the budget envelope. So don’t worry, the APBN is not breaking,” said Sri Mulyani at the forum organized by the Coordinating Ministry for Economic Affairs on Tuesday, April 8, 2025.
She noted that several of President Prabowo Subianto’s priority initiatives—including free nutritious meals, subsidized fertilizers, fuel and electricity—have already reached millions of recipients and are fully accounted for in the 2025 budget.
Strategic Spending Within Limits
Sri Mulyani reaffirmed that even newer proposals, such as free health screenings and rural cooperative development, are covered by existing allocations. Village cooperatives, she added, will be funded through the village fund scheme.
“The development of rural cooperatives will be supported through village funds,” she stated.
Sri Mulyani said that the ministry has seen state revenue bottoming out in March, growing by 9 percent from the same month last year, compared to -4% in February and 13% in January.
She further explained that the government continues to prioritize good governance without inflating budget forecasts. This applies not only to social sectors but also to defense, where local arms manufacturing and strategic military procurement are being advanced without straining fiscal limits.
“We want to stress that the APBN remains the anchor of investor confidence,” she said.
Oversight of Sovereign Wealth Fund in Focus
Sri Mulyani also addressed the role of Danantara, the state’s recently expanded sovereign wealth fund, particularly regarding its dividend use and governance standards. She emphasized that Danantara has already implemented strong whistleblower and oversight mechanisms to ensure transparency and avoid conflicts of interest or corruption.
“We will continue working with our friends at the state-owned enterprises and Danantara to maintain transparency and build investor trust,” she added.
Danantara’s integration with the broader fiscal framework, according to Sri Mulyani, reflects the government’s commitment to balancing ambitious development goals with fiscal responsibility.