Domestic Economy Relatively Stable This Year Becomes A Securities Capital In Facing Uncertainty In 2023

Photo: Doc. Ministry of Finance

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani Indrawati said that Indonesia's economic condition is in a relatively stable position, both in terms of macroeconomic, fiscal and monetary, as well as the financial sector in general.

According to the Minister of Finance, Indonesia's state revenue is in good condition and Indonesia's trade balance is in a good position. Even so, he reminded that it is necessary to be aware of global conditions that are still full of uncertainty due to unstable geopolitics.

"So the pillars in the macroeconomic balance are the balance of payments, the state budget, monetary, and then the real growth sector. Now, what we will try to fix is to enter 2023 which will be increasingly difficult to predict because the factor is not an economic problem, but because of geopolitical problems," he said in a written statement quoted on Thursday, December 22.

The Minister of Finance added that the Russian-Ukraine War and the condition of the RRT as the world's second-largest economy, which is currently facing a surge in COVID cases, need to be observed.

The first risk is exports that are our source of growth. I think in the future exports will return to normal levels after three years of strong growth," he said.

Therefore, the treasurer mentioned the need to diversify the goals of export countries to maintain performance, such as to India and countries in the Middle East region.

Furthermore, he explained that the government continues to encourage investment and downstream efforts. He said, the performance of investment that enters the country is also influenced by global interest rates, which now tend to increase.

"We have to work extra hard to keep our investments growing above 6 percent and even reaching above 7 percent," he added.

The Minister of Finance ensured that the APBN would always be alerted as a shock absorber to withstand large numbers of shocks so that they would not be immediately forwarded to the public. In his notes, this year's APBN has spent more than IDR 500 trillion on subsidies/compensation.

"Everything is intended to maintain people's purchasing power and provide social safety nets, especially to vulnerable groups. So our fiscal strategy continues to maintain and improve fundamental economic growth, especially those influenced by domestic factors such as consumption, government spending, incentives and also the creation of a competitive business climate for investment," closed the Minister of Finance Sri Mulyani.