Sri Mulyani Calls Recovery Steps To Support The Health Of The State Budget, Indonesia's Economy Continues To Improve

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

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the economic recovery measures led by the government had a positive impact on the health of the State Revenue and Expenditure Budget (APBN). She conveyed this in the Press Conference of our State Budget which was held virtually today.

“Our state budget is still working extraordinarily hard, but the economic recovery has supported the consolidation and recovery of the state budget as well. So the state budget restores the economy, the economic recovery restores the health of the state budget. This is what we want to continue to maintain in a positive way between the economy and the state budget, namely that the recovery will continue so that the health of the state budget can also continue," she said on Thursday evening, November 25.

The Minister of Finance said that the latest consumption and production indicators showed solid strengthening in line with the improving control of the COVID-19 pandemic in Indonesia. Consumer optimism continues to strengthen as reflected in the October Consumer Confidence Index (IKK) of 113.4 or growing 43.5 percent as it is influenced by improving economic activity and people's incomes.

Furthermore, the state treasurer also revealed that the retail sales index is expected to improve in October, in line with increasing public activity. Meanwhile, Mandiri's spending value index at the end of October was recorded at 115.2 or rose 15 percent above pre-pandemic levels.

Meanwhile, on the production side, Indonesia's manufacturing PMI in October 2021 again recorded a record of 57.2. Imports of raw materials and capital goods grew very high at 55.8 percent and 29.4 percent, indicating maintained domestic production activity. The growth of electricity consumption year on year also continued to show a positive level in October, especially in the business and industrial sectors.

"We must maintain that the mobility of our people, which is starting to improve, PMI is improving, and consumer confidence is improving, is not accompanied by an increase in COVID-19 so that we can continue to maintain this recovery," she said.

The Minister of Finance hopes that in the fourth quarter the APBN can be carried out optimally, especially in terms of spending, both ministry/institutional expenditures and expenditures from regional governments, which are still very large. The Minister of Finance encourages that this state expenditure can be executed optimally in the last months.

"We hope that the entire government will focus on executing this expenditure, while maintaining good governance, while keeping it from being corrupted, while maintaining accountability, so that all state expenditures can really be felt by the community and are beneficial for economic recovery," concluded the Minister of Finance Sri Mulyani.