Jusuf Kalla: Fiscal Pressure, Government Must Dare to Choose Programs that Boost the Economy

JAKARTA - The 10th and 12th Vice President of the Republic of Indonesia, Jusuf Kalla, reminded the government not to run all programs at once in the midst of fiscal pressure. In a state of unbalanced state budgets, the government is asked to dare to determine the program that is most capable of driving economic growth and improving people's welfare.

This was conveyed by Jusuf Kalla (JK) after a discussion with a number of economists in South Jakarta, Sunday, March 8 evening. According to JK, the unhealthy fiscal situation requires the government to rearrange the country's spending priorities.

"In a state of fiscal imbalance, the solution is to choose financing that can advance the country and have an impact on the community, as well as how to increase state revenues," said JK.

He assessed that many government programs were indeed important. The free nutritious meal program (MBG), the procurement of the main equipment of the weapons system (alutsista), to the strengthening of cooperatives have good goals. However, the country does not always have enough fiscal space to run everything at the same time.

"MBG is important, buying military equipment is important, cooperatives are important. But there is something more important," said JK.

Therefore, according to JK, the government must place the budget on productive programs and be able to move the economy. The priority of state spending, he said, must be directed at sectors that provide a real impact on economic growth and people's lives.

"We must choose priorities that can provide good growth for this country and improve people's economic lives," he said.

JK emphasized that a number of programs were still needed, but their implementation must be adjusted to the country's fiscal conditions. When the budget space is limited, the government is required to choose the most urgent and most impactful steps.

"It doesn't mean it's not important, it needs to be, but there's a time. The most important thing right now is to choose the best priority," said JK.