The government is optimistic facing 2023 considering that until now the Indonesian economy has continued to grow positively after experiencing a recession in 2020 due to the Covid-19 pandemic.
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KOMPAS EDITOR
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SEKRETARIAT PRESIDEN
Presiden Joko Widodo.
The government has designed the 2023 State Budget as a cushion to face global uncertainty and to stimulate economic growth.
In his State of the Nation Address when submitting the 2023 Draft State Budget (APBN) and Financial Notes during the plenary session of the House of Representatives (DPR) in Jakarta on Tuesday (16/8/2022), President Joko “Jokowi” Widodo highlighted the role of the state budget as the engine for development and a cushion to reduce doubts and raise optimism. The 2023 State Budget has been designed to be anticipatory and responsive to various changes that may occur.
The government is optimistic facing 2023 considering that until now the Indonesian economy has continued to grow positively after experiencing a recession in 2020 due to the Covid-19 pandemic. The economy grew 5.44 percent in the second quarter of 2022, while inflation in July 2022 rose 4.9 percent year-on-year (yoy). The increase in state revenues from export taxes and other income has provided a cash buffer to dampen rising energy and food prices at the household level.
In anticipation, the government, as described in the President's address, will continue to boost the manufacturing and downstream sectors to get higher added-value and create jobs.
While in 2021 and 2022 Indonesia gained windfall profits from the high prices of mining commodities, coal and palm oil in the world market, next year, the threat of a world recession is expected to reduce the demand for mining commodities. In anticipation, the government, as described in the President's address, will continue to boost the manufacturing and downstream sectors to get higher added-value and create jobs.
The government intends to reduce the gap in welfare, unemployment and the number of poor people. However, we need to simultaneously create quality employments and improve labor productivity as well as to expand opportunities for women to enter the formal economy in order to increase prosperity while at the same time bringing Indonesia to be a rich country by 2045.
Next year, the government will establish five strategies, namely improving the quality of human resources, accelerating infrastructure development, implementing bureaucratic reform and simplifying regulations, revitalizing the industrial sector and promoting a green economy.
One thing that should not be forgotten is that next year a number of ministers and regional heads will take part in the 2024 General Elections. We want them to continue to focus on their duties as assistants to the President in realizing development targets. We do not want to lose the momentum we have right now.
KOMPAS/AGUS SUSANTO
The construction of high-rise buildings has resumed in the Cempaka Putih area, Central Jakarta, Sunday (28/6/2020) after the Covid-19 pandemic subsided.
Therefore, the State Budget must be able to open the bottlenecks that hinder faster growth. The five growth strategies included should encourage people to participate in the economy by removing various obstacles.
Better and more equitable public transportation and roads, for example, will allow for more efficient movement of goods and people. Promoting entrepreneurship can produce independent and creative people. Thus, we can recover faster and grow stronger.
(This article was translated by Hendarsyah Tarmizi)
