Sri Mulyani Presents Macroeconomic Framework And Fundamentals Of Fiscal Policy In The 2022 RAPBN At The DPR Plenary Session

Minister of Finance Sri Mulyani (right) when submitting a draft of the 2023 RAPBN to the chair of the DPR session (Photo: Capture Youtube DPR)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani today represented the government to present the macroeconomic framework and fiscal policy points in the 2023 State Revenue and Expenditure Budget Plan (RAPBN) at the DPR Plenary Session.

In his statement, the Minister of Finance said that the future economic recovery process is still full of challenges that must be responded to with appropriate macroeconomic and structural policies.

"Fiscal consolidation efforts in 2023 are accompanied by comprehensive fiscal reforms in terms of income, improving spending or spending better and encouraging productive and innovative financing," he said at the Parliament complex on Friday, May 20.

According to the Minister of Finance, a healthy APBN is a solid capital to continue to support economic development and improvement.

"Fiscal policy in 2023 is designed to be able to respond to economic dynamics, answer challenges, and support the achievement of development targets optimally," he said.

For this reason, the Minister of Finance said that the theme of fiscal policy in 2023 was focused on "Increasing Productivity for Inclusive and Sustainable Economic Transformation".

"The theme of the fiscal policy is in line with the theme of the Government Work Plan (RKP) for 2023," he stressed.

Furthermore, the state treasurer explained the strategy taken by the government for financial management next year.

First, focus the budget on strengthening the quality of human resources, accelerating infrastructure development, reforming the bureaucracy and regulations, revitalizing industry and encouraging green economic development.

Second, increasing the effectiveness of economic transformation supported by holistic fiscal reforms through revenue mobilization for widening fiscal space, consistently strengthening spending better for spending efficiency and effectiveness, and continuing to encourage creative and innovative financing development.

“In line with these goals, the Government continues to encourage the strengthening of spending better as a joint commitment. This is implemented through savings in goods expenditures, strengthening capital expenditures, reforming personnel expenditures, increasing effectiveness including the accuracy of targets for spending on social assistance and subsidies, as well as strengthening the quality of transfers to regions and village funds," he said.

The following is the range of macroeconomic indicators used as the basic assumptions for the preparation of the 2023 RAPBN.

Economic growth: 5.3 percent to 5.9 percent

Inflation: 2.0 percent to 4.0 percent

Rupiah exchange rate: IDR 14,300 to IDR 14,800 per US dollar

10-Year SBN interest rate: 7.34 percent to 9.16 percent

Indonesian crude oil price: 80 US dollars to 100 US dollars per barrel

Petroleum lifting: 619,000 – 680,000 barrels per day

Lifting gas: 1.02 million to 1.11 million barrels of oil equivalent per day

"In addition, the deficit was also redirected below 3 percent, which is between 2.61 percent to 2.90 percent of GDP, and the debt ratio remains under manageable limits in the range of 40.58 percent to 42.42 percent of GDP," closed the Minister of Finance Sri Mulyani.