Sri Mulyani Ensures Economic Development Does Not Only Rely On Fiscal And Monetary

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

JAKARTA - The government through the Ministry of Finance ensures that national economic development will not always depend on fiscal and monetary policies.

Finance Minister Sri Mulyani said the move was a way for Indonesia to avoid the burden of financing, which has been a mainstay alternative, especially in the pandemic era.

"In the midst of the large state expenditure needs and limited state revenues, Indonesia will slowly try to release its economic dependence on fiscal and monetary support by carrying out various reforms to strengthen the economy going forward", she said in an official statement on Monday, March 1. attend the G20 Finance Ministers meeting virtually.

Sri Mulyani added that the world of economy, including Indonesia, still needed support for recovery.

"In 2021, Indonesia will still allocate a large amount of state expenditure for handling COVID-19. For that, other alternatives are needed that are healthier to encourage economic recovery", he said.

On this occasion, the Minister of Finance expressed her attitude to strengthen international cooperation in facing global challenges. According to him, the road to normal global activities is expected to improve as vaccinations and social restrictions have been started in various countries.

"However, the projected economic recovery is still uncertain and uneven across countries. Learning from past crisis experiences, the G20 emphasized the importance of avoiding reducing stimulus too early so that the economic recovery process can run well", she stressed.

Most recently, the government recently informed that it has succeeded in issuing Government Securities (SUN) in two foreign currencies, namely the US dollar and the Euro.

The two financing instruments raised USD 4.2 billion for a 10-year tenor, USD 1.25 billion for 30 years, and USD 500 million for 50 years, respectively.

Meanwhile, the euro denomination is 1 billion euros for a 12-year tenor. If added together, the total SUN distributed by the government reached IDR 105.3 trillion (USD exchange rate IDR 14,100 and Euro exchange rate IDR 17,142).