Minister of Finance Sri Mulyani Indrawati brings promising news regarding the domestic economy, amidst reports of several countries worldwide facing challenging times. During a recent working meeting with Commission XI of the Indonesian Parliament in Jakarta, Sri Mulyani expressed her optimism, stating, “In comparison to many countries and current trends, our economic performance is notably positive.”
Reflecting on the impact of the COVID-19 pandemic, Sri Mulyani acknowledged that Indonesia, like other nations, experienced a significant economic downturn as a result of the sudden halt in societal activities. This unfortunate circumstance led to a stagnant economy and placed considerable strain on the livelihoods of the population. However, the government swiftly implemented fiscal measures to alleviate the burdens faced by the public, ensuring that they were not excessively burdensome.
The minister of finance emphasized the resilience and strength of Indonesia’s recovery efforts, particularly when compared to peer countries within the G20 and ASEAN. Despite the widespread impact of the pandemic, Indonesia’s economy managed to achieve a growth rate surpassing 5% in recent quarters, even as other nations faced the looming threat of recession.
One notable outcome of the fiscal optimization initiatives was the widening of the APBN deficit, which rose from its previous level below 3% of GDP to 6.27% of GDP. While this temporary increase is a consequence of the measures taken to support the economy, Sri Mulyani assured that as the nation continues its recovery trajectory, steps will be taken to gradually reduce the APBN deficit and bring it back below the intended threshold.
Highlighting the government’s commitment to responsible budget management, Sri Mulyani added, “The deficit briefly expanded to 6%, but we have successfully reduced it to below 3%. We are closely monitoring the implementation of budgeting by ministries and institutions to ensure a primary balance and maintain the appropriate ratio between the APBN and the state’s finances.”
Amidst a challenging global landscape, Sri Mulyani’s positive assessment of Indonesia’s economic performance serves as a ray of hope. The nation’s resilience, coupled with strategic fiscal measures, has positioned it on a path towards a rapid and robust recovery, distinguishing it among its international peers.
