Sri Mulyani: The State Budget Is No Longer The Main Engine Of Economic Growth, But To Maintain Shock

Minister of Finance Sri Mulyani (Photo: screenshot of the Ministry of Finance Youtube)

JAKARTA - Minister of Finance, Sri Mulyani, said that currently fiscal instruments are no longer intended as the main source of Indonesia's economic growth. The reason is that a number of productive sectors are now in a fairly good recovery phase with economic capabilities beginning to be established.

"Economic growth now does not depend only on the state budget", she said when giving a presentation to the media crew through online channels, Thursday, June 23.

According to the Minister of Finance, this condition has forced the government to shift the main role of fiscal into an instrument capable of managing pressures and economic shocks.

“The state budget has begun to shift into an instrument to keep shocks at bay and not become the main locomotive of growth. This is because the engines of growth have started, such as consumption, investment, and exports", she said.

However, the state treasurer admitted that he was still wary of the financial industry sector, which is currently in a phase of high turbulence.

“Volatility due to high inflation and monetary tightening has caused quite a stir. This can be seen from the VIX index and the MOVE index, which all experienced an increase, especially in June when the Fed had not announced an increase in interest rates", said Minister of Finance, Sri Mulyani.