State Budget Allocates Rp 446 Trillion for Prabowo’s 11 Priority Programs

Main Takeaways

● Indonesia’s 2025 APBN commits Rp 446.24 trillion to fund President Prabowo’s 11 strategic programs, led by free meals and rural cooperatives. ● The Free Nutritious Meals and Koperasi Merah Putih programs account for over 70% of total priority program funding. ● In parallel, the government is launching Rp 24.44 trillion worth of stimulus packages to support households, workers, and domestic demand. ● Over 94% of Indonesian villages and neighborhoods have already formed Merah Putih cooperatives as part of a massive rural empowerment push.

 

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JAKARTA, investortrust.id — Indonesia’s 2025 state budget has allocated Rp 446.24 trillion ($27.6 billion) to fund President Prabowo Subianto’s 11 flagship programs, part of an expansive push to boost welfare, education, and rural economies, Finance Minister Sri Mulyani Indrawati announced this week.

 

“APBN is a key instrument to create and enhance the welfare of the Indonesian people,” Sri Mulyani wrote on her personal Instagram account, reinforcing that fiscal resources would be concentrated on priority programs and economic resilience amid global uncertainties.

 

The Ministry of Finance detailed the 11 government priorities, which span food security, education reform, public health, housing, and rural development. Here are the 11 priority programs:

 

1. Free Nutritious Meals (MBG): Rp 121 trillion

2. Three Million Housing Program via the Liquidity Facility for Housing Financing (FLPP): Rp 41.88 trillion

3. Merah Putih Village Cooperatives: Rp 200 trillion

4. People's Schools: Rp 11.6 trillion

5. Garuda Excellence Schools: Rp 2 trillion

6. School Rehabilitation: Rp 19.5 trillion

7. Free Health Checks (CKG): Rp 3.4 trillion

8. Tuberculosis (TBC) Eradication: Rp 1.5 trillion

9. Construction of Quality Hospitals: Rp 1.7 trillion

10. Food Estates: Rp 23.16 trillion

11. Construction of Dams and Irrigation Systems: Rp 20.5 trillion

 

Sri Mulyani emphasized the APBN's dual role as a shock absorber and a countercyclical tool to sustain purchasing power, especially amid turbulent geopolitical and economic conditions.

 

Additional Stimulus to Spur Growth

 

To further stimulate the domestic economy, the government has also set aside Rp 49.3 trillion ($3 billion) to disburse the 13th-month salary for civil servants, military and police personnel, and retirees in June. The payout is part of a broader effort to sustain 5% GDP growth in the second quarter of 2025.

 

Complementing the priority program funding, the government is rolling out five additional economic stimulus packages, totaling Rp 24.44 trillion ($1.5 billion). These include:

 

1. Public transport subsidies: Rp 940 billion

2. Food aid for 18.3 million households, including Rp 200,000 monthly food cards and 10kg of rice per family: Rp 11.93 trillion

3. Wage subsidy support (BSU) for workers: Rp 10.72 trillion

4. Workplace accident insurance premium discounts: Rp 200 billion

5. Toll road tariff subsidies: Rp 650 billion, funded outside the APBN

 

Red White Village Cooperative Program Gains Ground

 

The Red White Village Cooperative initiative—central to Prabowo’s rural economic revival plan—has already seen widespread implementation. As of Saturday, June 8, over 79,226 villages and urban neighborhoods have officially formed cooperatives via special village assemblies.

 

According to the Ministry of Cooperatives and SMEs, 99.29% of Indonesia’s 83,762 villages and neighborhoods have received program socialization, with 94.58% of those having completed cooperative formation.

 

This ambitious effort aims to build economic self-reliance in rural Indonesia by promoting cooperative values such as mutual assistance and shared ownership. It is expected to become a pillar of inclusive economic growth under the Prabowo administration.