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The State Budget also boosts the manufacturing and export sectors with fiscal stimulus

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Jakarta – The government has reiterated that the 2025 State Budget (APBN) is geared towards accelerating the manufacturing and export sectors, supported by productive and strategic fiscal policies.

Finance Minister Purbaya Yudhi Sadewa stated that state spending this fiscal year is focused on supporting labor-intensive investment, industrial downstreaming, and strengthening the logistics chain.

“We will maximize fiscal instruments so that the manufacturing industry not only grows but is also able to compete in the global export market,” he explained. With this approach, the government wants to ensure the state budget has a direct impact on national production capacity and export expansion.

Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita stated that the state budget (APBN) program has accelerated the development of industrial estates and downstream facilities. He stated, “Fiscal incentives through the APBN enable industry to add value to its products. We are seeing a surge in export demand for processed products, and this is a momentum we must capitalize on,” he explained.

The government noted that the non-oil and gas processing sector’s contribution will increase throughout 2025, becoming a pillar of economic growth. Manufacturing’s position is also bolstered by the Manufacturing Index (PMI) remaining in the expansionary zone, indicating a revival in industrial activity.

Finance Minister Purbaya Yudhi Sadewa also reiterated his commitment to maintaining macroeconomic stability. He stated, “While we are encouraging pro-growth spending, we remain committed to fiscal discipline. The state budget deficit is closely monitored to ensure it remains at a credible and sustainable level,” he said.

As of August 2025, data from the Central Statistics Agency (BPS) shows a cumulative increase in non-oil and gas exports compared to last year, a positive sign that fiscal support is starting to translate into increased exports. The government stated that it will continue to monitor this export trend and adjust policies as needed to ensure the benefits of growth are more evenly distributed and long-term.

Going forward, the synergy between fiscal policy, investment, and structural reform will be the foundation of the State Budget (APBN) to drive manufacturing and export growth. The government is committed to making the APBN a primary instrument for strengthening national competitiveness while improving public welfare.

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