The House of Representatives (DPR) and the government have agreed on the 2025 State Budget assumptions, setting the rupiah exchange rate at Rp 16,000 per US dollar, slightly lower than the governments proposed Rp 16,100.

Kahar Muzakir, Chairman of DPRs Commission XI, said that the exchange rate assumption was set after negotiations and considering the current global economic conditions.

We have agreed on Rp16,000 and a 7 percent rate for 10-year government bonds, down from the initial proposal of 7.1 percent, Kahar said during a meeting with the government at the DPR building on Wednesday.

Only the assumptions for the rupiah and the government securities interest rate have changed from the governments initial proposal, while other macroeconomic assumptions remain as initially proposed. Finance Minister Sri Mulyani Indrawati had earlier stated that the government set the rupiah exchange rate assumption at Rp 16,100 per US dollar to account for global economic dynamics. In recent months, the rupiah and several other currencies have faced pressure due to a stronger US dollar. However, in the past two weeks, the rupiah has

strengthened. In the last two weeks, we have seen a significant appreciation of the rupiah, reflecting global factors, particularly from advanced economies impacting the entire world, said Sri Mulyani.The agreed macroeconomic assumptions, development targets, and indicators for the 2025 RAPBN are as follows:

Macroeconomic Assumptions:

Economic Growth: 5.2 percent

Inflation: 2.5 percent

Rupiah Exchange Rate: Rp 16,000 per US dollar

10-Year Government Bond Rate: 7 percent

Development Targets:

Open Unemployment Rate: 4.5-5 percent

Poverty Rate: 7-8 percent

Extreme Poverty Rate: 0 percent

Gini Ratio: 0.379-0.382

Human Capital Index: 0.56

Source : jakartaglobe.id

Aug 31, 2024