Sri Mulyani Ensures That The State Budget Is Always Present To Maintain People's Purchasing Power

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the government was trying to maintain people's purchasing power amidst the challenges of the pandemic and also commodity price fluctuations through optimizing the State Revenue and Expenditure Budget (APBN).

According to the Minister of Finance, economic growth of 5.01 percent in the first quarter of 2022 is something to be grateful for in the midst of the economic contraction that occurred.

"We all know about the war in Ukraine which has caused many and very complicated spillover effects, ranging from supply disruptions to the side of rising commodity prices which will pose much more complicated challenges," she said in an official statement today, Thursday, May 12.

The Minister of Finance added that the APBN will remain an instrument that is always ready to maintain people's purchasing power by providing subsidies for fuel and electricity.

“World oil prices are already above 100 dollars per barrel and far from our state budget assumption, which is only 63 dollars. This huge difference was then held back by the state budget shocks so that we could maintain the purchasing power of the people who have not yet recovered," she said.

The same thing happens with electricity, where most of the domestic production is still generated by Steam-electric Power Station (PLTU).

“Electricity prices have not changed even though the electricity component, starting with coal, has increased. We have now adopted a 70 dollar pricing policy. Even though the price (of coal) is already above 200 dollars," she said.

The state treasurer then explained about the sale value of gas, which has actually increased in line with fluctuations in commodity prices.

“Or if we talk about gas/LPG (subsidy), the price will increase. So the price of electricity and gas in the community has not changed, but surely someone will have to pay later. So, who pays? Again, the state budget," she said.

The Minister of Finance hopes that the APBN can be a good cushion, remain sustainable and have a main focus, namely protecting the community.

"So we all want the economy to continue to grow and with a healthy state budget," closed the Minister of Finance Sri Mulyani.