Sri Mulyani Believes That The Job Creation Act Will Make Indonesia Stronger When It Comes Out Of The Pandemic Crisis Krisis

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

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the implementation of the Job Creation Law starting to roll out during the pandemic will make Indonesia's economic structure stronger than before if the COVID-19 crisis is over.

"If we talk about the implementation of the Job Creation Act, then we want Indonesia to come out with a stronger foundation and a better quality of economic equality after the pandemic is over," he said in a webinar organized by the Supreme Audit Agency (BPK) on Tuesday, 15 June.

The Minister of Finance added that in the recovery situation, fiscal instruments also need to enter the stage of restructuring.

"If that happens, the consolidation of the state budget as an instrument that works extraordinary in holding back the impact of the pandemic must return to its original condition," he said.

Furthermore, the former boss of the IMF and World Bank explained that Perpu Number 1 of 2020 concerning State Finance mandates that the excessive fiscal burden is only valid for three years.

"Our opportunity is only three years for extraordinary fiscal, after that it must be at the proper level," he said.

To that end, the government through the Ministry of Finance then synergized with Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS) to jointly safeguard the economic and financial sectors in the country so as not to contract further.

"Bank Indonesia which is independent will remain independent but that does not mean it cannot help the government to overcome the pandemic situation," he added.

For information, BI plays a central role in supporting state finances to deal with the impact of COVID-19.

In a working meeting with Commission XI of the Indonesian House of Representatives at the Senayan Parliament Complex, Jakarta some time ago BI Governor Perry Warjiyo said that the central bank had purchased state securities (SBN) in the primary market for Rp. 115.87 trillion to help bear the burden of the 2021 State Budget.

"Of this amount, Rp40.41 trillion was obtained through the main auction, and another Rp75.46 trillion was obtained from an additional auction mechanism or green shoe option (GSO)," said the BI Governor.