State Revenue Growth Shows Strong Economic Resilient Power

Illustration (Photo: Freepic)

Minister of Finance (Menkeu) Sri Mulyani Indrawati reported that the performance of the state budget in early 2023 was still on a positive track by posting a 48.1 percent state revenue growth compared to the end of 2022.

According to the Minister of Finance, last month's state revenue was recorded at Rp232.2 trillion, equivalent to 9.4 percent of the APBN target.

"This certainly reflects the overall economic condition," he said in a written statement quoted on Thursday, February 23.

The Minister of Finance explained that the global economic condition was still dominated by a slowdown in economic growth. However, Indonesia's growth rate is relatively impressive with 5.3 percent.

"This is an achievement as well as a basis that we can be optimistic because in terms of the economy it shows that there is a very strong resilience and momentum for economic recovery," he said.

The Minister of Finance added that there are several things that must be watched out for in the future, such as commodity price uncertainty, geopolitical factors, and the risks of climate change.

"If we look at it, now the attention is always on price movements. We see here because coal is starting to decline, then CPO, Brent, and gas are decreasing, this of course contributes, especially inflation that comes from energy commodities in developed countries," he said.

The state treasurer also said that the recovery trend can be seen in terms of production or sector, such as the manufacturing, trade, agriculture, mining, construction and transportation sectors.

This illustrates that Indonesia's economic recovery is broad base. All sectors that were hit have also started to return," he stressed.

Meanwhile, in terms of balance, the payment balance shows a prime condition by recording a surplus of up to 33 consecutive months until it manages to break the highest record.

Meanwhile, capital flows to state securities and the Indonesian bond market also show a positive trend. Banking and Bank Indonesia are still the owners or investments of the largest state securities holdings, with declining foreign ownership.

"This is of course because the performance of our economy and also fiscal policies that are very prudent are one factor that determines confidence in Indonesian securities," he concluded.