The Direction Of The 2023 State Budget Described By Sri Mulyani's Subordinates: Maintaining Fiscal Sustainability And A Sustainable Economy

Deputy Minister of Finance Suahasil Nazara (Photo: screenshot of Bappenas Youtube)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the direction of state policy for the 2023 period would be focused on ongoing fiscal consolidation efforts and at the same time the State Budget must be prepared to be a shock absorber in managing the pressures that are present.

According to Suahasil, one of the situations that continues to be a concern for the government is related to geopolitical conditions in Eastern Europe, which create further uncertainty.

“Then also volatility in world financial markets, normalization of monetary policy from both America and European countries. These are all estimates of the shock that we must anticipate," he said through a virtual channel on Thursday, April 28.

Suahasil added that next year's APBN will still be a driver of economic recovery and also an instrument for protecting public health.

"Here, the state budget will continue to withstand pressure from rising commodity prices such as cooking oil and also carry out social expenditures which are expected to maintain people's purchasing power and income," he said.

Furthermore, Sri Mulyani's subordinates grouped the work of the 2023 APBN in five main things, namely, improving the quality of human resources, infrastructure, bureaucratic reform, industrial revitalization, and a green economy for sustainability measures.

"In accordance with the direction of the President, the mobilization of state revenues must be strengthened, the sharpening of spending at ministries/agencies and local governments, as well as innovative financing in order to continue to invite investment," he stressed.

For information, in the 2023 macro assumption, the government has set a target for economic growth in the range of 5.3 percent to 5.9 percent with an inflation level of 2-4 percent.

Then the rupiah exchange rate of Rp. 13,800 to Rp. 15,000, interest rates for 10-year Government Securities (SUN) from 6.65 to 7.77 percent, Indonesian crude oil prices from 65 to 75 US dollars per barrel, oil lifting at 652,000 to 750,000 barrels. per day, and gas lifting of 1 million to 1.1 million barrels of oil equivalent per day.

To note, the 2023 State Budget is also the first year that the budget deficit has returned to 3 percent after previously receiving room for easing since 2020 in response to the COVID-19 pandemic situation.