Indonesia Parliament Approves $216 Billion State Budget for 2024

Indonesia’s parliament passed into law the $216 billion state budget for 2024 that will help President Joko Widodo accelerate development projects in his final year.

(Bloomberg) — Indonesia’s parliament passed into law the $216 billion state budget for 2024 that will help President Joko Widodo accelerate development projects in his final year. 

Lawmakers passed the budget into law at a plenary meeting on Thursday, with next year’s state spending seen higher at 3,325 trillion rupiah to support an economic growth target of 5.2%. The budget shortfall is set at 2.29% of gross domestic product.

Those goals match the GDP growth and fiscal deficit targets for this year, which had been both lowered from the estimates initially set in the 2023 budget.

Meanwhile, the government increased its price assumption for crude oil to $82 per barrel next year from an earlier estimate of $80, in the face of rising global costs.

Jokowi — as the president is known — is focusing on completing his key projects and policies by the end of his second and final term next year, including toll roads, smelters, and a government center in the new capital city. 

In an interview with Bloomberg this week, the outgoing leader predicted a 7% annual GDP growth by 2027-2028 so long as his successor sticks to his infrastructure and downstream reform policies.

Southeast Asia’s biggest economy will hold its biggest ever election next year, with over 200 million people voting for the president and legislative posts.

 

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