All Factions Agree, Discussion On The 2023 RAPBN Runs Smoothly: The Government Gives Thank You

Finance Minister Sri Mulyani (center) on the official agenda at the DPR (Photo: Doc. Ministry of Finance)

JAKARTA - The discussion of the Macroeconomic Framework and the Principles of Fiscal Policy (KEM PPKF) 2023 in the Plenary Session of the DPR today went smoothly. Minister of Finance (Menkeu) Sri Mulyani as a representative of the government expressed her gratitude for the contribution made by parliament.

"On behalf of the government, we express our gratitude and highest appreciation to all factions of the DPR for the various inputs, suggestions, and constructive views as well as the approval of all factions to continue the discussion in preparing the Draft State Revenue and Expenditure Budget (RAPBN) for 2023. ,” he said at the Parliament Complex, Tuesday, May 31.

According to the Minister of Finance, the government and the DPR have the same understanding that strong and inclusive economic growth is needed to improve the welfare of all Indonesian people.

“From the domestic side, we view that the prospect of national economic recovery continues to strengthen. Reflecting on the effects of the commodity boom period in 2011 and 2012, investment will be a driver of economic growth, especially by taking advantage of high commodity prices and accelerated economic transformation," he said.

Meanwhile, from public investment, the Minister of Finance said that the sustainability of national strategic projects and the development of IKN Nusantara would encourage investment growth while creating stimulation for the activities of private sector investors in the future.

The Minister of Finance added that the improvement in the intermediation function in the financial sector, which was marked by an increase in bank credit growth, would also encourage investment activity.

“On the other hand, public encouragement and consumption will also strengthen along with the improvement in welfare levels. Types of consumption that were suppressed during the pandemic, such as consumption of clothing, shoes, and related to leisure, such as tourism and visits to recreation centers, are starting to recover and are expected to continue to increase this year and next year, he explained.

Furthermore, the state treasurer explained that the acceleration of economic transformation is expected to have a significant and inclusive impact on Indonesia's growth performance. The Minister of Finance said this was pursued by continuing to push for the implementation of the structural reform agenda, namely improving the quality of human resources, accelerating infrastructure development, as well as improving regulations and bureaucracy.

"Efforts to strengthen downstreaming and revitalize the industry will boost the performance of the manufacturing sector, while the development of the digital economy will spur the performance of the modern service sector, particularly the trade and information communication sector," he said.

The following are some of the macro assumptions agreed in the discussion of the 2023 RAPBN.

economic growth: 5.3 percent to 5.9 percent Inflation: 2.0 percent to 4.0 percent Rupiah exchange rate: Rp. 14,300 to Rp. 14,800 per dollar AS 10-Year SBN interest rate: 7.34 percent to 9.16 percent Oil price Indonesian crude oil: 80 US dollars to 100 US dollars per barrel Oil lifting: 619,000 – 680,000 barrels per day Gas lifting: 1.02 million to 1.11 million barrels of oil equivalent per day