Full Blessings! This Is The Cause Of The Republic Of Indonesia's Money Fans Every Time The World Of The Crisis

Illustration (Photo: Doc. Antara)

JAKARTA - Economist of the University of Indonesia's Institute for Economic and Community Research (LPEM UI) Kiki Verico said that Indonesia actually benefits from every global crisis that occurs.

According to him, this cannot be separated from Indonesia's status as one of the natural commodity exporters and also from the aspect of the rupiah exchange rate valuation. Kiki said that Indonesia received positive excesses in terms of the current account.

"In the last 30 years, every time there is global pressure (crisis), Indonesia's current account must be positive," he said online on Wednesday, January 25.

Kiki explained, in the era of the 2020 pandemic until now, the value of Indonesian transactions continues to show the achievement of surplus.

"This is because commodity prices are rising, such as coal and CPO. So there is kind of good luck too," he said.

In a long jump to the 1998 period when Asia was hit by a financial crisis, Kiki revealed that Indonesia actually enjoyed a current account surplus.

At that time there was an undervalue of the rupiah which made our rupiah cheap. This then increases the valuation of the export value and at the same time imports are decreasing," he said.

Then, in 2008 when there was a financial crisis in Europe and America, Indonesia benefited from the increase in commodity prices, especially in coal.

"This is a blessing in itself because the revenue side has increased so that the government's burden can be reduced and recover faster," he stressed.

For information, the realization of state revenue in 2021 was recorded at IDR 2,011.3 trillion or higher than the APBN target of IDR 1,743.6 trillion.

Meanwhile, in 2022, state revenues will be realized amounting to Rp2,626.4 trillion, 115 percent greater than the APBN ceiling according to Presidential Decree 98/2022 which is valued at Rp2,266.2 trillion.

The sponsorship of the state coffers makes efforts to restore the state budget faster than the initial plan. Previously, the government set a budget deficit below 3 percent of GDP to occur in 2023. However, in the 2022 State Budget the deficit was able to achieve this target by perched at the level of 2.38 percent of GDP.