Sri Mulyani Responds To The Government's View Of Factions On The 2023 State Budget Bill

Minister of Finance Sri Mulyani (left) when submitting the document for the 2023 State Budget Bill to the DPR (Photo: Capture the Youtube screen of the DPR RI)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani today conveyed the government's response to the general view of the DPR faction on the 2023 State Budget Bill.

According to the Minister of Finance, the 2023 State Budget design was prepared based on the principle of optimism and alertness. It is explained that optimism is based on the achievement of state finances in 2022 which is quite good with the projected state revenue which will exceed the target.

"However, we maintain high vigilance because of thick and dark clouds in the form of inflation, rising interest rates, tightening liquidity, and weakening the economy in developed countries, and geopolitical tensions that cause negative propagation throughout the world," he said at the Senayan Parliament Complex, Jakarta on Tuesday, August 30.

The Minister of Finance added that the conditions that occurred had an impact on the food and Gobal energy crisis from supply chain disruption.

"All of this can threaten the Indonesian economy in the form of price pressure or inflation as well as weakening demand and growth," he said.

According to VOI records, the government targets economic growth in 2023 to be 5.3 percent. Then, inflation will be maintained in the range of 3.3 percent which illustrates the sustainability of the recovery of the demand side, especially due to the improvement in people's purchasing power.

Then, the average rupiah exchange rate is estimated to move around Rp. 14,750 per US dollar and the 10-year state securities (SUN) interest rate is predicted at the level of 7.85 percent.

Furthermore, the price of Indonesian crude oil (ICP) is expected to range from US$90 per barrel.

On the other hand, oil and gas lifting is estimated to reach 660,000 barrels per day and 1.05 million barrels of oil equivalent per day, respectively.

As for fiscal, state expenditures are planned at IDR 3,041.7 trillion and state revenues of IDR 2,443.6 trillion. This means that the amount of expenditure greater than revenue makes the state budget deficit perched at IDR 598.2 trillion or equivalent to 2.85 percent of gross domestic product (GDP).

"We welcome the honorable council members to discuss the State Budget for Fiscal Year 2023 and its financial notes in accordance with the provisions of the applicable legislation and the agreed schedule. May Allah SWT always delegate His grace and grace to all of us in carrying out our duties and responsibilities to our beloved nation and country," concluded Minister of Finance Sri Mulyani.