Jokowi Targets Reducing Poverty Rate To 9 Percent And Unemployment By 6.3 Percent In 2022

President Jokowi (photo: documentation of the MPR/DPR/DPD Annual Session)

JAKARTA - President Joko Widodo (Jokowi) targets the poverty rate to be at the level of 9 percent. Then, the unemployment rate was pegged at 6.3 percent.

This effort is part of the government's commitment to reducing poverty, especially eradicating extreme poverty, and reducing inequality.

"The open unemployment rate is 5.5-6.3 percent. The poverty rate is in the range of 8.5-9.0 percent, with an emphasis on reducing extreme poverty", he said in his introductory speech on the State Budget Bill for the 2022 Fiscal Year along with the Financial Note, Monday, 16 August.

Meanwhile, Jokowi said, the level of inequality, the Gini ratio was set in the range of 0.376-0.378, and the human development index was in the range of 73.41-73.46.

Previously, Jokowi set state expenditures in the 2022 State Budget Draft at IDR 2.708.7 trillion. This budget is expected to encourage the achievement of development goals. This value includes Central Government expenditures of IDR 1.938.3 trillion and Transfers to Regions and Village Funds of IDR 770.4 trillion.

The details include the planned health budget of IDR 255.3 trillion, the social protection budget of IDR 427.5 trillion, the education budget of IDR 541.7 trillion, and the infrastructure development budget of IDR 384.8 trillion. In addition, the budget for transfers to regions and village funds is planned at IDR 770.4 trillion.

"The various state spending policies as a whole are expected to encourage the achievement of the development targets in 2022", he said.

In addition, Jokowi said that the future fiscal policy architecture must also be anticipatory and responsive while maintaining a balance between countercyclical or countercyclical capabilities and risk control efforts so that long-term fiscal sustainability can be maintained. Considering the dynamics of the economy and developments in the handling of COVID-19.

"By maintaining a balance between countercyclical capabilities and risk control efforts so that long-term fiscal sustainability can be maintained", he said.

Therefore, said Jokowi, consolidation and fiscal reform must continue to be carried out in a comprehensive, gradual and measurable manner. This includes strengthening the state revenue side and improving the expenditure side as well as prudent and prudent financing management.

"To realize a fiscal management that is healthier, more resilient, and able to maintain future economic stability", he said.