The 2022 State Budget Deficit Is Confirmed To Be Lower Than The Target, Indonesia's Debt Is Less

Illustration (Photo: Doc. Ministry of Finance)

Minister of Finance Sri Mulyani stated that her party is optimistic that this year's deficit in the State Revenue and Expenditure Budget (APBN) will be lower than the government's initial projection.

It was explained that the realization of state spending until September 2022 was IDR 1,913.9 trillion or 61.6 percent of the target. This amount is lower than state revenue which reached IDR 1,974.7 trillion. As a result, the APBN has a surplus of IDR 60.9 trillion at the close of the third quarter of 2022.

These results made the realization of budget financing decline sharply with a book of IDR 429.8 trillion or only 51.2 percent of the target.

"This result is relatively efficient in line with the optimal revenue achievement," he said through a virtual channel on Thursday, November 3.

According to the Minister of Finance, the government is focusing on spending to encourage economic recovery, support price stability, and protect people's purchasing power.

"The budget is also directed to support investment in the context of accelerating infrastructure development and increasing access to financing for MSMEs and low-income people (MBR)," he said.

Therefore, the Minister of Finance believes that the state's financial condition will be better at the close of the year than the initial plan when the government was set.

"With these developments, the APBN deficit is estimated to be lower than the target of Presidential Regulation 98/2022," he said.

"This of course makes the risk of debt more controlled so that medium-term fiscal sustainability can be maintained. The role of the state budget as a shock absorber is also expected to function optimally amidst the risk of global uncertainty that is still escalative," closed the Minister of Finance Sri Mulyani.