Facing Global Challenges 2023, The Ministry Of Finance Will Run Fiscal Consolidation: The State Budget Deficit Returns To 3 Percent From GDP

JAKARTA - The Ministry of Finance (Kemenkeu) has prepared a number of policies to face global challenges in 2023 which are predicted to have an impact on the national economy, one of which is by carrying out fiscal consolidation.

Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said fiscal consolidation could be one solution to stabilize the national economy. "This step is one of the important steps to maintain policy credibility, as we have committed since the beginning of the pandemic," said Febrio in the Webinar "Momentum Economic Consolidation & Politics" Business Challenges 2023 Online, Thursday, December 15. In carrying out the fiscal consolidation, said Febrio, the government will restore the upper limit on the APBN deficit by 3 percent of GDP. "This will maintain fiscal sustainability, as well as secure development spending that is crucial for long-term (Economic) growth (Indonesia)," he said.

Furthermore, said Febrio, fiscal consolidation is also an important step to ensure that the APBN can still be maintained in good health. "So that at any time it is ready to become a shock absorber in the face of a global pressure situation that is still high," he said. Later, the 2023 fiscal consolidation step will be taken with consolidation accompanied by comprehensive fiscal reform, both in terms of income, spending, and financing. "This is of course to maintain a balance between risk mitigation efforts and efforts to maintain momentum in order to avoid oputunity loss," added Febrio. For your information, Indonesia will carry out fiscal consolidation for the first time next year to face global challenges in the world.