KONTAN.CO.ID - JAKARTA. The Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas), Suharso Monoarfa, has urged Finance Minister Sri Mulyani Indrawati to reduce the 2025 budget deficit to between 1.5% and 1.8% of the Gross Domestic Product (GDP).

In a statement to the press, Suharso explained that this figure is his proposal, intended to provide the new government with more fiscal flexibility.

"This is purely my idea, from Bappenas," Suharso told reporters on Wednesday (5/6).

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He acknowledged that the deficit range set in the 2025 Macro Economic Framework and Fiscal Policy Principles (KEM-PPKF) of 2.45%-2.82% of GDP is a jointly agreed figure, including Bappenas.

However, Suharso said, under Article 5 of Law Number 17 of 2007 on the National Long-Term Development Plan 2005-2025, the new government has ample room to refine the Government Work Plan (RKP) and the State Budget through the State Budget Amendment mechanism (APBN-P).

"Yesterday in the Budget Committee we conveyed that there is Article 5, meaning there is a loophole, there is an opportunity, a window of opportunity for Mr. Prabowo to use that article," he said.

According to him, a lower deficit is needed by the new government to provide more fiscal space in implementing its programs, especially in the first period.

"Indeed, we will meet with the team from Mr. Prabowo's place officially so that we can synchronize it," Suharso clarified.