Ministry of Finance: The 2023 Economy Will Not Be as Bad as Previously Estimated

Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu (Photo: Capture the screen of the Ministry of Finance's Youtube)

JAKARTA – The Ministry of Finance (Kemenkeu) confirmed that the government remains optimistic in carrying out economic activities this year but still prioritizes the principle of vigilance and caution.

This was stated by the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu when answering journalists' questions. According to him, the projected global economic slowdown accompanied by the threat of a recession will not have as deep an impact as previously estimated.

"It is believed that the economy in 2023 will not be as bad as previously estimated," he said through a virtual channel on Wednesday, February 22.

For your information, one of the important factors that will support the world economy going forward is the reopening of productive activities in China after the zero covid policy easing.

"However, this vigilance is a point that we must continue to maintain," said Febrio.

The positive signal is reflected in the realization of the State Revenue and Expenditure Budget (APBN), which recorded a surplus of IDR 90.8 trillion in January 2023. This value is equivalent to 0.43 percent of gross domestic product (GDP).

"The implementation of the 2023 state budget has been very good so far, and this is inseparable from the trend of our economic growth which is still very good," he stressed.

For information, signs of a brighter economy have previously been captured by Bank Indonesia (BI). The monetary authority is known to have revised up Indonesia's economic growth from previously around 4.9 percent to 5.1 percent this year.