Gov’t, House Agree to Bring 2022 Budget Bill to Plenary Session

President Joko Widodo delivers address on the Presentation of the Government Statement on the Bill on the State Budget for the 2022 Fiscal Year and its Financial Note before the members of the House of Representatives (DPR) on August 16, 2021. Photo by: BPMI of Presidential Secretariat.

The Government and the Budget Committee of the House of Representatives (Banggar DPR) have agreed to bring the 2022 State Budget Bill to the House plenary meeting.

“On behalf of the Government, allow me to express my gratitude and appreciation to Chairperson, all Deputy Chairperson and Members of the Budget Committee as well as members of the House who have made the best effort to complete the legislation process of the State Budget Bill,” Minister of Finance Sri Mulyani Indrawati said on Tuesday (28/09).

For the record, the macro assumptions in the 2022 State Budget Bill are as follows: economic growth (5.2 percent); inflation rate (3 percent); rupiah exchange rate (Rp.14,350 per United States Dollar); 10-year Government Debt Securities interest rate (6.82 percent); Indonesian crude oil price (US$ 63 per barrel); oil lifting (703,000 barrels per day); natural gas lifting (1,036,000 barrels of oil equivalent per day); the open unemployment rate (5.5-6.3 percent); poverty rate (8.5-9 percent); Gini ratio (0.376-0.378); human development index (73.41-73.46); farmer exchange rate (103-105); and fisherman’s exchange rate (104-106).

The revenue in 2022 is projected to increase following the prospects for economic recovery and tax reforms. The State revenue target is Rp1,846 trillion, consisting of a tax revenue target of Rp1,510 trillion, and Non-Tax State Revenues of Rp335 billion.

The expenditure in 2022 will focus on priority, efficient, results-based, and anticipatory programs strengthening fiscal decentralization as well as controlling the quality of transfers to regions and village funds (TKDD). The State expenditure is planned at Rp 2,714 trillion, consisting of the Central Government budget of Rp 1,944 trillion and the budget of transfers to regions and village funds of Rp 769 trillion.

The 2022 State Budget will continue to fund programs to protect the Indonesian people from health and life threats, safeguard the welfare for the poor and the vulnerable, and support the resilience of the business sectors and MSMEs.

“Law Number 2 of 2020 stipulates that the 2022 State Budget is the last State Budget with a deficit higher than 3%. It is important for us to maintain the economic recovery and continue to make efforts to strengthen the State Budget and reach fiscal consolidation in 2023,” the Minister remarked. (PR of Ministry of Finance/UN) (RI/LW)