Come On, Let's Use Domestic Products To Keep The Economy And The State Budget

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance encourages the public to increase consumption of domestic products in order to strengthen the national economy.

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said this effort was considered important because it indirectly helped maintain the health of the State Revenue and Expenditure Budget (APBN).

"We must all be able to maintain the economy so that we can continue to survive the threat of global uncertainty, one of which is by consuming domestic products," he said in a written statement quoted on Thursday, October 13.

According to Suahasil, in a pandemic situation the position of the state budget is also very strategic because it has become a catalyst for Indonesia's growth.

"We have conveyed that spending on domestic products can also support the economy and health of the state budget," he said.

He conveyed the government's optimism and vigilance in the short term, namely regarding the assumptions used in compiling the 2023 State Budget posture.

"We will optimize state revenues by continuing to pay attention to the risks of vigilance. On the expenditure side, it will support all consumption that increases productivity and plays the role of the state budget as a shock absorber earlier. This is one of the efforts to suppress the budget deficit below 3 percent of gross domestic product (GDP)," he explained.

Sri Mulyani's deputy explained that the government also has optimism for the medium and long term economy.

For this reason, Suahasi revealed the need for reforms in terms of structural and fiscal terms.

"Fiscal reforms over the last two years have issued tax laws, new fiscal decentralization laws, and the job creation law which is also structural reforms. We also carry out budget reforms and we want to reform the financial sector," he stressed.

For information, the renewal of economic regulations is marked by the applicability of the tax system improvement, namely through the Law on Harmonization of Tax Regulations (UU HPP).

In addition, with the reform of the Job Creation Law, the establishment of an Indonesia Investment Authority (INA), as well as the development of digitalization.

"Our challenges in the future are digitization, fintech. This is an opportunity as well as a challenge. This long-term source of financing is very important, and this is what we are trying to develop now and we will propose in the form of reforms," concluded Deputy Minister of Finance Suahasil Nazara.