JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadewa ensures that government priority programs such as Free Nutritious Meals (MBG) and the Red and White Village/Village Cooperative (KDKMP) do not put pressure on the national fiscal condition.
Purbaya emphasized that the program was designed to be flexible so that it could be adjusted to economic conditions and budgetary needs.
"Initially, the assumption was that MBG was not flexible, others were not flexible. I gave it to S&P, this one can be adjusted, this one can be adjusted. So don't be afraid about our fiscal condition. We can see everything, we can arrange, we can control," said Purbaya as quoted by ANTARA, Saturday, June 6.
He explained that international rating agencies, such as S&P Global, do not question the existence of these programs from a fiscal fundamental point of view.
According to him, the attention that arises is more related to market perceptions and sentiments.
"When I last met S&P, he didn't really argue about it. He just argued about sentiment, questioned or worried about the negative sentiment in the market, that's all. But if the foundation, there is no problem," said Purbaya.
Purbaya emphasized that the government was still able to maintain the budget deficit within a safe limit even though various priority programs continued to be carried out.
"Because we can assure that even with this program, we can maintain a deficit of 2-3 percent. And if it is a crisis, for example, the world oil price is higher again, it can be controlled according to what is needed," he said.
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