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Minister of Finance (Menkeu) Sri Mulyani Indrawati said that Indonesia's economic condition in 2023 will be on an optimistic path but remain vigilant.

According to him, this strategy was taken because of different economic challenges from the previous year, especially supply constraints due to the impact of the pandemic and due to war and geopolitical.

Meanwhile, in terms of demand, it continues to increase, causing complexity.

APBN will continue to be designed to be able to answer changes from risks and economic dynamics, both global ones which then seep into our country. We are optimistic about the 2023 economy, but the alertness is very high," he said in a written statement quoted on Thursday, October 20.

He added that this level of vigilance is shown by the posture of the State Budget for Fiscal Year 2023 which carries a deficit policy again below 3 percent in accordance with Law Number 2 of 2020.

It is stated that fiscal instruments are trying to improve economic fundamentals in terms of productivity and to maintain spending and state revenues that must be disciplined and effective.

"Shopping based on ministries/agencies and spending to the regions must be seen and the quality improved. We will continue to reform the income side. The DPR has also agreed with the government to revise the tax law through the HPP Law and the HKPD Law. This is one of the very good reforms," he explained.

It was revealed that the government will increase productivity in terms of spending, namely by improving the quality of human resources, including improving the quality of education, providing social assistance, improving food security, and improving the quality and facilities of health.

"While we will maintain health spending at the mandatory spending level, the focus is on health spending in terms of the construction of health facilities or primary, secondary health services, and improving the quality of health services in general. Of course, it also continues to provide support for health care policies and health insurance nationally," he said.

Finally, the Minister of Finance also conveyed Indonesia's commitment to continue to maintain optimism but at the same time remain vigilant which is very high.

"For this reason, we will continue to maintain the APBN to be able to maintain in terms of demand, supply, but the APBN itself must also be stronger, healthier. Meanwhile, cooperation between fiscal, monetary, and the financial sector will continue to be intensified because challenges have shifted to the financial sector," he concluded.


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