Facing Global Economic Uncertainty 2023, The State Budget Needs Maximum Work As A Shock Absorber

Chairman of the Budget Agency of the House of Representatives (Banggar DPR) Said Abdullah. (Photo: Doc. Antara/Banggar DPR)

Chairman of the Budget Agency of the House of Representatives (Banggar DPR) Said Abdullah assessed that it is very important to maximize the realization of the 2022 State Revenue and Expenditure Budget (APBN) as a healthy fiscal capital facing global economic uncertainty in the future.

The goal is that the role of the 2023 State Budget as a force of shock absorber can work optimally and not interfere with the continuity of various strategic programs that have been planned for next year.

"Next year's challenge is very uncertain, so global and domestic risks are increasing compared to this year," Said said as reported by Antara, Thursday, December 22.

The APBN deficit as of December 14, 2022, was successfully reduced to the level of 1.22 percent of gross domestic product (GDP) or IDR 237.7 trillion, thanks to state revenues which reached IDR 2,579.9 trillion with state expenditures of IDR 2,717.6 trillion.

Nevertheless, he reminded that the prices of strategic commodities supporting export commodities are now starting to decline, so that it will be a challenge for the government next year to pursue tax revenue and Non-Tax State Revenue (PNBP) targets, which require businesses and plans with various adequate possibilities.

It was also reminded that the continued policy of high interest rates by a number of central banks of various countries, continues to create cost of funds in high positions. Although Indonesia's yield of state securities (SBN) is quite moderate compared to a number of countries, namely at the level of 6 percent so far this year.

"This position is a very good capital, but we must not be careless because the cost of funds can be higher in the midst of uncertain situations. It is important for the government to mitigate debt financing next year," he said.

In addition, Said suggested that investment financing policies through the APBN should be more selective with the emphasis on productive sectors that have multiple impacts and basic infrastructure to support Indonesia's superior human resource targets to support the 2045 Golden Indonesia Vision stage.

On the other hand, it is necessary to accelerate the national energy transformation which has been based on fuel oil (BBM) to reduce the risk of dependence on imports, in order to strengthen fiscal space next year in the face of the turmoil of the external economy.

The management of subsidies, both energy and non-energy, he said, must be improved so that subsidized budget support from the APBN next year is more targeted and has a significant impact as a support force for purchasing power and productivity of poor households.