The Ministry of Finance Ensures Indonesia’s Economy Is at a Safe Level

Indonesia's Traditional Market

The threat of the Recession became a hot topic discussed around the world. This threat is real. Some countries have even experienced it. In response, the Ministry of Finance asked the Indonesian people not to worry about the 2023 dynamic conditions.

Special Staff to the Ministry of Finance for Strategic Communication Yustinus Prastowo said Indonesia was still at a safe level. The reason is, the number of international institutions estimates that Indonesia will still grow positively by around 5 percent next year.

The government has also prepared several steps to anticipate this condition.

“For the community, we also hope that people remain optimistic, alert, not to worry, because we are at a safe level and the government together with other authorities will also continue to maintain good conditions,” said Prastowo at the Merdeka Barat 9 Forum (FMB9), Friday (10/21/2022).

Prastowo admits that coordination between fiscal and monetary authorities continues. To face the recession storm next year, the government has prepared the 2023 State Budget.

The 2023 state budget, he said, was prepared to generate optimism while maintaining vigilance, where the government has started by reforming the fuel subsidy.

From the APBN side, the APBN continues to sharpen or focus spending on priority spending, and social protection (Perlinsos) continues to be allocated.

This strengthening was also followed by other reinforcements, including incentives provided by the sector. For SMEs, for example, the government provides tax incentives and receives capital support. For job seekers, the Pre-Employment Card program is still being provided to support job seekers.

The government also continues to coordinate with regional governments through the Regional Inflation Control Team (TPID) so that inflation can be controlled.

Then, most recently, Bank Indonesia (BI) decided to adjust the interest rate to 4.75 percent in response to monetary policy in the US.

“Hopefully this will prevent capital outflows, including handling inflation conditions in the country,” he said.

“We have anticipated. With good predictions, it is hoped that we can continue to maintain the momentum of economic recovery,” said Prastowo

Furthermore, next year, it is said that the government will focus on several priority sectors, such as improving the quality of human resources, dealing with stunting and maternal and child mortality rates, health and digital infrastructure, revitalizing industries, and the green economy by increasing state revenues and spending better.