Ministry Of Finance: The State Budget Keeps Indonesia's Positive Trends Amid Global Economic Contractions

Minister of Finance Sri Mulyani (Photo: Doc. Ministry of Finance)

Minister of Finance (Menkeu) Sri Mulyani said that in the midst of the slowing world economy, Indonesia's latest economic development shows encouraging positive signs.

According to him, the increasing household consumption and manufacturing activities that continue to grow have kept Indonesia able to record relatively stable and sustainable growth.

"Indonesia itself is still in the position of manufacturing Purchasing Managers Index (PMI) which is expansive and even tends to strengthen, which is to the level of 53.3," he said at the State Budget press conference, Friday, August 11.

The Minister of Finance explained that in the midst of the current world economic contraction, only 18.2 percent of countries recorded an expansive and at the same time strengthening PMI, including Indonesia, India, the Philippines and Mexico.

Our economic growth is at 5.17 percent. This is above the expectations of market analysts who predict the Indonesian economy will continue to grow but not that high," he said.

The Minister of Finance said that the positive trend of the Indonesian economy was also influenced by the APBN which supports household consumption. He explained that inflation is low because the APBN is working together with Bank Indonesia to keep prices affordable for people's purchasing power.

"APBN works to help the community, especially the most vulnerable, the lowest 40 percent by spending on social assistance and assistance to the community," he said.

"In a global economic situation that is slowing down and geopolitical dynamics that is still volatile, the 2023 State Budget is determined to accelerate economic recovery and implement a national priority agenda. The goal is to create quality economic growth and provide direct benefits for the community," closed the Minister of Finance Sri Mulyani.