The State Budget Draft For 2022 Is Approved By The House Of Representatives, President Jokowi Is Ready To Read The Financial Notes At The Session On August 16

Illustration (Photo: Doc. Antara)

JAKARTA - The government received the green light to roll out the 2022 State Budget and Expenditure Budget (APBN) Bill after the Indonesian House of Representatives' Budget Agency (Banggar) approved the preliminary 2022 draft (RAPBN) proposed by the Minister of Finance (Menkeu) Sri Mulyani. Meanwhile, the preliminary discussion of the 2022 RAPBN was carried out by forming a Working Committee (Panja).

In the process, the Panja provides input and comments on next year's budget draft as part of the mechanism for determining state finances.

"The report from the Panja is very complete, it will be very useful for us to prepare the 2022 RAPBN which will run in June", said Minister of Finance Sri Mulyani in a working meeting with the Indonesian House of Representatives (DPR RI) Banggar which was held virtually, Wednesday, June 30.

A number of important points for the basic macro assumptions in the 2022 RAPBN agreed by the government and parliament are that next year's economic growth is targeted at the level of 5.2 percent to 5.8 percent.

Then, the inflation rate is 3 percent plus minus 1 percent, the rupiah exchange rate is IDR 13.900-IDR 14.800 per US dollar, the interest rate of 10-year SUN (government bonds) is pegged at 6.3-7.27 percent.

Then, the price of Indonesian crude oil is USD 55-70 per barrel, oil and gas lifting is 686.000-750.000 barrels per day, and natural gas lifting is 1.031-1.200 thousand barrels of oil equivalent per day.

Meanwhile, for next year's development target, six important points were reached, namely the unemployment rate in the range of 5.5-6.3 percent, poverty 8.5-9 percent, and the Gini ratio of 0.376-0.378.

Furthermore, the human development index is 73.41-73.46, the farmer's exchange rate (NTP) is 103-105, and the fishermen's exchange rate (NTN) is 104-106.

Furthermore, in terms of fiscal posture, it is agreed that state revenues are 10.18-10.44 percent of GDP (gross domestic product), and state expenditures are 14.59-15.30 percent of GDP, the primary balance is 2.31-2.65 percent of GDP, budget deficit 4.51-4.85 percent of GDP, and financing (debt) 4.51-4.85 percent of GDP.

"The preparation of the RAPBN will begin immediately so that the government has enough time so that the President can submit the financial note on August 16", said Minister of Finance Sri Mulyani.

To note, the DPR's approval of the Preliminary RAPBN is very important to pave the way for the president to be able to submit the 2022 State Budget Bill (RUU) along with financial notes in the Representative Council Annual Session in the context of the Republic of Indonesia's Independence Day.