Sri Mulyani Says Fiscal Policy is the Key to Economic Protection

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

JAKARTA – Minister of Finance Sri Mulyani Indrawati revealed that many countries are unable to properly maintain their economy, especially the fiscal or State Revenue and Expenditure Budget (APBN) in facing a number of global challenges.

"Many countries are unable to maintain the fiscal/APBN properly, thus triggering a financial and economic crisis that threatens socio-political stability," wrote Sri Mulyani on her official Instagram account @smindrawati, Sunday, November 19.

According to Sri Mulyani, like the current conditions, where there are always shocks that threaten the economy after the pandemic, there are issues of change, geopolitics, and supply disruption. As well as conditions of inflation and high-interest rates in the United States and Europe.

Sri Mulyani said that the APBN as a fiscal policy functions to protect the economy and the people through allocation, distribution, and stabilization functions.

"The APBN must continue to be kept healthy, credible, and sustainable to overcome problems with the quality of human resources, infrastructure, productivity, and competitiveness so that prosperity and social justice can be realized for all Indonesian people," she said.

Sri Mulyani emphasized that Indonesia manages the APBN carefully or prudently, and is responsive and accountable, and remains healthy or credible.

Meanwhile, to overcome the threat of climate change, fiscal policy is also very important in supporting the transition to a green economy, including the energy transition.

Indonesia is also known to be the chairman of the World Finance Ministers Coalition for Climate Action.