Sri Mulyani Is Confident That The 2021 State Budget Deficit Could Be 5.2 Percent, Lower Than The 5.7 Percent Target

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance, Sri Mulyani, is optimistic that the widening of the 2021 State Budget (APBN) deficit can be lower than the 5.7 percent stipulated in the law.

According to her, in the remaining fourth quarter of this year, economic activity continues to show improvement in line with the controlled daily cases of COVID-19.

“Maybe it will be at the level of 5.2 percent to 5.4 percent. There is still an economy that is moving for a month and a half and this deficit is lower than the Law on the State Budget of 5.7 percent", she said at the 2021 CEO Forum held by Kompas, Thursday, November 18.

The Minister of Finance added, apart from the pandemic aspect, the economic stretch will also be supported by Indonesia's fairly good foreign trade, especially in terms of selling superior commodities.

"Another factor is seen from the increase in production prices and make commodity prices rise", she said.

Just so you know, the state budget deficit of up to 5.7 percent of gross domestic product (GDP) is a discretion given to the government as a response to the COVID-19 pandemic. This is stated in Law Number 2 of 2020 concerning State Finances in the Pandemic Period.

For the 2022 period, the state budget deficit is set at a maximum of 4.8 percent. Meanwhile, in the future, the deficit must be returned to a normal level below 3 percent of GDP so that the health of the state budget can be maintained.