Indonesian President Joko Widodo presented the 2025 budget proposal to the parliament on Friday, with Southeast Asia's biggest economy expected to expand by 5.2 percent next year.

Widodo, whose second and final term as president will end in October, said Indonesia "is one of the few countries that had been able to recover sooner" in the post-pandemic era, with average GDP growth topping 5 percent in the past few years. The Indonesian government is targeting 5.2 percent growth this year.

Education, healthcare, connectivity and the development of the new capital city Nusantara are among the priorities outlined in the proposed budget. Members of parliament have been deliberating the 2025 budget plan since May and will discuss the budget plan with incoming president Prabowo Subianto.

Widodo said inflation this year is kept under control at 2 to 3 percent. He said the inflation target in 2025 is set at around 2.5 percent.

He also expects the rupiah to trade at 16,100 against the US dollar with the 10-year government bond yield at 7.1 percent. Indonesian crude oil prices are estimated at $82 per barrel.

The proposed budget has allocated state spending at 3,613.1 trillion rupiah ($230.2 million), which includes 2,693.2 trillion rupiah for central government spending and 919.9 trillion rupiah for transfer to the regions. The 2025 budget deficit is planned at 2.53 percent of GDP, equivalent to 616.2 trillion rupiah.

Mustafa Izzuddin, a senior international affairs analyst at Solaris Strategies Singapore, said by outlining the economic gains of his administration, Widodo is telling both the domestic and international audience that the Indonesia he passes on to Prabowo is "on the rapid ascendancy because of the collective efforts of his administration".

"Widodo has left an indelible mark on the political history of Indonesia and he will be seen favorably in generations to come," he said.

Josua Pardede, the chief economist at the Jakarta-based Permata-Bank, said the proposed 2025 budget would help Indonesia escape the middle-income trap by leveraging the country's demographic bonus, continuing economic transformation, enhancing investment attractiveness and creating more job opportunities.

Pardede said that given the relatively stagnant global economy, domestic demand will be the key driver of Indonesia's economic growth. He said inflation control, job creation and support for social welfare programs and subsidies can support household spending.

Widodo also said in his speech that Indonesia has taken great leaps in boosting productivity and has focused on exporting processed products instead of raw materials.

Although many other countries lodged complaints against Indonesia, and even tried to abort the country's efforts, "we, as a sovereign state, as a great nation, will not falter, and even we will leap forward", Widodo said, alluding to his administration's downstream policy.