Sri Mulyani: The 2022 Economic Challenges Have Shifted, The Government Anticipates Through Three Ways

Illustration. (Angga Nugraha/VOI)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani revealed that the economic challenges in April 2022 have shifted from the original due to the COVID-19 pandemic to being dominated by rising prices, both due to supply disruptions and geopolitical pressures.

"This extreme price increase causes a tightening of the monetary sector which causes interest rates to rise and liquidity is tight," he said in an official statement today, Wednesday, May 25.

According to the Minister of Finance, there are at least four challenges that must be faced in the Indonesian economy, namely high inflation, rising interest rates, tightening liquidity, and slowing global economic growth.

"This is a risk that must be the center of our attention for this year and next year," he said.

Furthermore, the state treasurer explained that the state budget would remain the main and first instrument in protecting the economy and society. The Minister of Finance assessed that the consolidation of the state budget is a must in order to maintain healthy and sustainable state finances.

"Because if it's not in a situation of high inflation, high interest rates, tight liquidity, and weak economic growth, the state budget should not be weak or should be healthy immediately," he asserted.

The Minister of Finance added that the government has three focuses this year. First, maintaining economic recovery so that momentum is maintained. Second, maintain people's purchasing power. And third, maintaining the health and sustainability of the state budget.

"For this reason, we will continue to work closely with all ministries/agencies and also with the DPR so that the APBN can be maintained properly to support economic recovery, maintain people's purchasing power, and maintain the health of the APBN itself," concluded Minister of Finance Sri Mulyani.