Sri Mulyani Reveals A Number Of Global Threats That Can Influence State Budget Postures

JAKARTA - The Minister of Finance of the Republic of Indonesia (Menkeu) Sri Mulyani revealed a number of global threats that could influence and form the Indonesian State Revenue and Expenditure Budget (APBN).

Sri Mulyani said that the global economic condition was still filled with uncertainty, so vigilance was needed.

He revealed, despite geopolitical tension, his party detected repeated patterns such as political tension, escalation between the United States Blocks, China, and Russia.

"It has even become a war like in Ukraine, then in the Middle East," Sri Mulyani said at the 2025 RAPBN Press Conference in Jakarta, Friday, August 16.

Not only geopolitical conflicts, continued Sri Mulyani, several things that President Joko Widodo had said were trade wars such as rising tariff and non-tariff instruments, to stem trade between countries.

"This then creates a vulnerability to the global value chain or global supply chain," he continued.

He added, on the other hand, with the various vulnerabilities that have been exposed, it then triggers a food and energy crisis which then creates a response in the form of high interest rates.

"Although there is hope that it will decrease, high interest rates will occur from 2022 to 2024," added Sri Mulyani.

The combination of global tension, global supply chain disruption, high inflation and high interest rates then eroded purchasing power and suppressed investment interest and caused world economic growth to weaken.

Evidently, until now, the world's economic growth has only reached 3.1 percent or lower than the previous decade which was recorded to be able to grow above 4 percent.

In a situation full of uncertainty, he said, the disruption then caused volatility in financial markets such as exchange rates, capital flows and yields to move quickly in a short time.

"On the other hand, we are dealing with fundamentally changing factors. There are climate change and digital technology including artificial intelligence (AI), and demographic issues will become issues that will form and affect the global and national economy," he concluded.