Oil and Gas Investors Relieved, Government Ensures 2024 Election Is Not a Source of Uncertainty

Sri Mulyani (Photo: Doc. Ig Sri Mulyani)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the five-yearly democratic party, namely the general election (election), is not a momentum that business actors need to worry about.

According to her, the government will ensure that the leadership transition process in Indonesia will run smoothly as has happened in previous periods. The Minister of Finance conveyed this when speaking in front of oil and gas investors on the agenda of The 4th International Convention On Indonesian Oil and Gas (ICIOG) 2023 in Bali.

“Our domestic demand projections will continue. Therefore, in relation to the elections in February 2024, Indonesia ensures that democracy and elections are not a source of uncertainty. "This is a democratic system that we maintain to promote stability and a smooth transition of government," she said on Wednesday, September 20.

The Minister of Finance explained that Indonesia, like many other countries, experienced fiscal pressure during the pandemic. However, the government has been able to manage state financial instruments credibly while providing a cushion against shocks that occur.

“I'm sure you all understand that there has been quite significant price volatility over the last few years. Prices fell sharply at the start of the pandemic. During the recovery period there was a very high price increase. "Under these conditions, many countries then pass on this burden (increasing oil and gas prices) directly to the public, and this results in a sharp increase in inflation," she said.

The Minister of Finance added that the Indonesian Government then made efforts to reduce risks by optimizing fiscal functions through increasing the subsidy budget in the State Budget (APBN).

"I know you came here to find out about Indonesia's policies in the oil and gas sector... In this case, we mentioned that our fiscal instruments are effectively able to act as a shock absorber," stressed the Minister of Finance.