The President of Indonesia, Joko Widodo, continues to carry out national development. Jokowi has even set a development budget for next year. He allocated a budget for infrastructure development reaching Rp392 trillion in the 2023 draft state budget (ABPN).
Jokowi emphasized that the relatively large infrastructure development expenditure was directed to support strengthening the provision of basic services and increasing productivity through connectivity and mobility infrastructure.
“As well as providing affordable, reliable energy and food infrastructure and taking into account environmental aspects as well as equitable infrastructure and ICT access,” said Jokowi when delivering his introductory Speech on the 2023 RAPBN and its Financial Note, Jakarta, Tuesday (16/8/2022).
Jokowi said to support the target for accelerating infrastructure development, the government would combine the budget through investment financing schemes, ministry or agency spending, and the role of the private sector.
“The PPP scheme is a financing model that continues to be offered,” he said.
Meanwhile, the budget allocation increased slightly when compared to this year. The government has budgeted infrastructure spending of IDR 384.8 trillion in 2022.
In the previous year, the government’s infrastructure budget allocation set a record or reached Rp 417.4 trillion. When compared to the first year of the Covid-19 pandemic, the allocation jumped 48.4 percent.
On average, since 2019 or Jokowi’s second term, the budget allocation has ranged from IDR 281.3 trillion to IDR 417.4 trillion.
Meanwhile, the government targets state revenues in 2023 to reach IDR 2,443.6 trillion, consisting of tax revenues of IDR 2,016.9 trillion and non-tax state revenues (PNBP) of IDR 426.3 trillion.
By observing the needs of state spending and optimizing state revenues, the 2023 budget deficit is planned at 2.85 percent of GDP or Rp. 598.2 trillion.
“The budget deficit in 2023 is the first year we return to a maximum deficit of 3 percent of GDP,” he said.
