The discussion on the 2024 State Budget Draft conducted by the government and the DPR has now agreed on the assumption of economic growth next year of 5.1 percent to 5.7 percent.
This figure is lower than the previous target which was at the target level of 5.3 percent to 5.7 percent.
Minister of Finance (Menkeu) Sri Mulyani explained that this could not be separated from the current development of the domestic and world economy and its future prospects.
"The geopolitical escalation of tension has led to an increase in global uncertainty and fragmentation which has a major impact on international investment and trade flows," he said in a written message on Thursday, June 8.
According to the Minister of Finance, indications of a slowdown in world economic performance are also increasingly visible, especially in many developed countries and China. Meanwhile, on the domestic side, several indicators of the Indonesian economy continue to provide an expansive signal.
"Consumption activities continue to show a strengthening trend. However, the impact of global dynamics on the country needs to be watched out for, especially regarding the downward trend in export performance," he said.
The Minister of Finance added that investment performance also has the potential to be restrained, in line with the wait and see attitude of business actors related to the dynamics of the world economy and the period leading up to the election.
He said, the development of potential industries, including sectors related to downstream natural resources, is expected to continue to spur future economic growth performance, especially through increased investment and competitiveness of export products.
Considering these things, the government together with Commission XI of the DPR agreed on the proposal for the Basic Macroeconomic Assumption (ADEM) of the 2024 State Budget Draft. The assumption of economic growth, which was originally estimated at 5.3 5.7 percent, was adjusted to 5.1 5.7 percent to make it more realistic in line with the latest developments and external challenges and risks," he explained.
"The adjustment of this growth assumption is intended to maintain the credibility of the 2024 RAPBN formulation which has been very good so far," said Minister of Finance Sri Mulyani.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
