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Minister of Finance: 2022 State Budget will restore the nation’s economy

Jakarta, The Indonesia Post – Minister of Finance Sri Mulyani Indrawati said that the 2022 State Revenue and Expenditure Budget (APBN) is a fiscal instrument that will restore the nation’s economy from the threat of global recession and geopolitical threats.

Sri Mulyani said that the world was experiencing the threat of recession and fluctuations in food and energy prices which caused the worst increase in inflation in the last 40 years.

“The condition of global uncertainty certainly affects and threatens the Indonesian people, the Indonesian economy, economy and finance. Because the world is indeed interconnected,” said Sri Mulyani at the 5th DPR RI Plenary Meeting in Jakarta, Tuesday.

Sri Mulyani said that 2022 will become even more complicated. Not because of the pandemic, but because of the emergence of increasingly severe geopolitical competition, as happened in the Ukraine and Russia conflict.

She explained that 2022 will be the third year of the COVID-19 pandemic which has ravaged the world, including Indonesia. To protect the people from various threats, such as in the fields of health, economics, finance and geopolitics, the APBN is a reliable fiscal instrument.

“The 2022 APBN is a very important and strategic instrument. The APBN is working extraordinarily hard as an instrument to save the nation, protect the people and restore the Indonesian economy,” said the Minister of Finance.

She said that the 2022 APBN was used to protect the community through a number of programs, such as the national economic recovery program or PEN which focuses on handling health, protecting the community and economic recovery.

The Minister of Finance said that the Indonesian economy was able to grow 5.3 percent in 2022 compared to the previous year, at a time when the world was hit by the highest inflation and a very rapid and extreme increase in interest rates in just 12 months. This economic growth figure exceeded the target of 5.2 percent.

Indonesia was also able to reduce the poverty rate, namely from 9.71 percent to 9.57 percent. Apart from that, he added, the open unemployment rate also decreased from 5.86 percent to 5.49 percent.

“This is a truly extraordinary situation. Economic recovery is occurring evenly in all sectors and in all regions of Indonesia,” said Sri Mulyani.

According to her, economic recovery is proceeding quickly and consistently, thereby increasing Indonesia’s gross national income per capita. The minister said that the increase reached 9.8 percent, now to 4,580 US dollars per capita in 2022.

This, she said, made Indonesia return to the category of upper middle income country.

“We are grateful that Indonesia is able to protect its people and recover the economy effectively using APBN instruments,” she said.

Good results, she said, were the result of joint hard work and extraordinary mutual cooperation from all stakeholders. (mhn/bbs)

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