Sri Mulyani: The State Budget Supports the Success of Economic Growth in 2022 at 5.3 Percent

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – The Ministry of Finance (Ministry of Finance) responded to the achievement of economic growth of 5.31 per cent in 2022 as an encouraging result amidst a global economic slowdown.

The Minister of Finance, Sri Mulyani, in an official statement, stated that the results obtained last year were far above 2021, which at that time was only 3.7 per cent.

"Alhamdulillah, even though since 2022 world economic growth is projected to slow down, Indonesia's economy has recorded a very good growth trend", she said on Tuesday, February 7.

According to the Minister of Finance, the effectiveness of pandemic handling policies has played a big role in maintaining the sustainability of the economic recovery. It was stated that the acceleration of the vaccination program and the right approach to implementing social restrictions had effectively controlled the Covid-19 transmission rate.

In addition, various programs for the Handling of COVID-19 and the National Economic Recovery (PC-PEN) have provided a major impetus for economic acceleration in the country.

"This is what keeps economic activity from recovering more quickly", she said.

The state treasurer explained that the role of the state budget as a shock absorber is so crucial. This can be reflected in the ability of fiscal instruments to withstand price fluctuations due to supply chain disruptions and geopolitical factors.

"Global transmission has an impact on high domestic inflation which can then be suppressed by optimizing the State Budget's function as a shock absorber. The government issued many social protection schemes, such as BLT, and wage subsidies which also aim to maintain purchasing power. As a result, domestic inflation is under control at a moderate level so that economic recovery continues", she said.

For information, this year the government is still setting growth targets which tend to be aggressive with 4.5 per cent to 5.3 per cent even though the dynamics of 2023 are believed to be even greater.

"The 2023 state budget has been prepared so that we are always optimistic but alert to the potential for the economy going forward", concluded the Minister of Finance Sri Mulyani.