The Covid-19 pandemic that occurred since 2020 has burdened the state budget. This makes the government try hard to stabilize the national finance. However, along with the declining trend of virus cases, the budget for handling Covid-19 will be stopped this year.
By stopping the budget for handling the pandemic, the government can breathe a little easier. The state financial sector will also be more awake. This is based on the burden-sharing collaboration between the government and Bank Indonesia (BI) which will end this year.
Thus, it means that the government’s budget for handling Covid-19 and economic recovery will no longer be supported by the central bank.
Minister of Finance Sri Mulyani Indrawati has prepared state finances to deal with this change, as well as the uncertain economic conditions going forward.
“I am doing it now by collecting my SiLPA so that even though next year there will be no SKB 3 (burden sharing), I will have a cushion of financing,” Sri Mulyani said in the 2023 Indonesian Economic Outlook, quoted Thursday (22/12/2022).
Evidently, the Remaining Budget Calculations (SiLPA) recorded by Sri Mulyani this year reached hundreds of trillions. From data from the Ministry of Finance, SiLPA as of December 14 2022 reached IDR 232.2 trillion.
This has not been added to the 2021 SiLPA which has only been partially used and leaves IDR 165 trillion. Thus, the government is estimated to have an excess budget balance (SAL) of Rp. 397.3 trillion. SAL is a financial balance that comes from year to year accumulation of SiLPA.
As is known, Bank Indonesia and the Ministry of Finance have collaborated to maintain the State Budget (APBN) through the burden-sharing scheme as outlined in the Joint Decrees (SKB) I, II, and III from 2020 to the end of 2022.
With the burden-sharing agreement, BI can buy SBN in the primary market. This is a special policy because so far BI has only been able to buy SBN on the secondary market.
BI is known to have purchased SBN on the primary market reaching IDR 974.09 trillion. Of the total Rp. 974.09 trillion, Rp. 26.61 trillion for SKB I, then Rp. 397.56 trillion for SKB II.
As a result, up to November 15, 2022, the Joint Ministerial Decree III aimed at health and humanity had realized IDR 310.4 trillion. There is still a commitment of Rp 128.58 trillion that has not been realized. This scheme will certainly end this year.