2023Economy Direction: The Government Relies Domestic Consumption, Global Conditions Can't Be Expected

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the economic growth target of 5.3 percent in the 2023 State Budget Bill (RUU) might still be adjusted.

According to the Minister of Finance, the government will continue to finalize the macroeconomic concept for the next year which will be reflected in the Law on the State Budget for Fiscal Year 2023.

It was stated by the state treasurer that one of the focuses of attention was the effect of the weakening of the world's economy which is still ongoing.

The 5.3 percent growth assumption is still within the initial discussion range with the House of Representatives (DPR) and is in line with projections with various international institutions and market analysts. However, we still have to be aware of the possibility of risks of weakening the global economy which can have an impact on national economic performance," she said at the DPR Plenary Meeting at the Senayan Parliament Complex, Jakarta on Tuesday, August 30.

Regarding this situation, the government, called the Minister of Finance, will focus on strengthening domestically to maintain consumption levels and support the national economy.

Therefore, domestic consumption and investment must be maintained in terms of recovery momentum. Meanwhile, equitable distribution of growth between islands, inter-directions, and between sectors must continue to be increased," she said.

The state treasurer also said that the aspect of maintaining the economy could not be separated from the steps that would be taken to stabilize the prices of various strategic needs, which are now in an upward trend.

"In line with efforts to encourage economic growth, the government will keep inflation in the country under control," she stressed.

For information, in the 2023 State Budget Bill, the government proposed that inflation be in the range of 3.3 percent.

Meanwhile, the state's financial burden in the coming period is quite heavy because it must comply with the mandatory budget deficit of under 3 percent of GDP in conditions of continued global uncertainty.

Meanwhile, for 2022, Indonesia has benefited greatly from the windfall of commodities which has increased in the state revenue sector. It is believed that the collapsed durian effect of these commodities will not be repeated next year and will return to normal price levels.