Change The Posture Of The 2020 State Budget Three Times To Avoid Minus Economic Growth

Ministry of Finance Building. (Angga Nugraha / VOI)

JAKARTA - The government is again making changes to the 2020 State Budget (APBN). This is due to the APBN deficit that has widened from the initial projection of 5.07 percent. The legal basis for the second change in posture will be completed in the next two weeks.

Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said the second amendment to Presidential Decree 54 of 2020, which was passed on April 6, is currently in process and has been stipulated in a cabinet meeting.

"This is part of the reality that we have to face and the government responds quickly to what is happening in our economic growth day by day. Officially this is done with a Presidential Decree. This could be passed in a short time, say a week to two weeks from now. , "he said, in a video conference with journalists, Thursday, June 4.

Febrio said the changes in the two postures of the State Budget reflect that the current life situation is in an abnormal condition. This condition demands speed from the government for the changes that occurred during the pre-COVID-19 period.

As is known, based on Law (UU) Number 17 of 2003 concerning State Finances, it is stated that the budget deficit is limited to a maximum of 3 percent of gross domestic product (GDP). However, due to COVID-19, the deficit is projected to widen, so the government has issued Perppu No.1 / 2020.

The maximum limit for the 2020 State Budget deficit is increased through Presidential Decree Number 54 of 2020 on April 6. This is because the deficit has reached 5.07 percent. Then, the government widened the APBN deficit back to 6.34 percent.

"We already have three postures this year. The first posture is the 2020 State Budget. The second change is in the Presidential Decree Number 54 of 2020. Then the next Presidential Regulation is the second amendment to the Presidential Decree Number 54 of 2020. This is the process that has taken place in the last two months," he said.

Negative Indonesian Economic Growth Opportunities

Febrio said that currently the government is still using a tough scenario. However, he did not deny that there was an opportunity for an economic crisis. Where Indonesia's economic growth becomes negative according to the toughest scenario, namely minus 0.4 percent.

"This is what we are trying to avoid. Actually, a very significant slowdown is very hard for us to live with. Usually we grow 5 percent, but now we will be very deep in the correction. But what we really want to avoid is not to let the growth be negative," he explained.

According to Febrio, if Indonesia's economic growth is negative, the impact on poverty and unemployment will be very high. Because of this condition, the government finally changed the posture of the 2020 State Budget.

"This is the basis for why the government corrects, issues a new policy program, ensures that we don't get negative growth. The real summary that happens in our economic growth is to make it clear that poverty doesn't get too deep. Unemployment doesn't add too much. Because if it's too much. , to take care of it again for the recovery is too heavy. It will definitely be hard, "he said.