Gov’t Continues to Prioritize Social Protection Program, Education on 2023 State Budget

President Jokowi leads the Limited Cabinet Meeting on the Draft of Government’s Working Plans and 2023 Indicative Ceiling, at Presidential Office, Jakarta, Thursday (04/14). (Photo by: PR/Rahmat)

Minister of Finance Sri Mulyani Indrawati Thursday (04/14) announced that social protection programs for vulnerable groups remains a priority in the 2023 State Expenditure in the State Budget (APBN).

“The social protection budget will be maintained at the range of Rp349-332 trillion,” Sri Mulyani said after attending a limited cabinet meeting at Presidential Office, Jakarta.

According to the Minister, the Government will continue to update the integrated data on social welfare, which becomes the main reference for the program’s beneficiaries.

“Ministry of Social Affairs will also launch an empowerment program that will be integrated with social protection program,” she said.

Meanwhile, for spending in health sector in 2023, Sri Mulyani added, the Government is expected that COVID-19 will no longer become a factor; thus the non-COVID-19 spending will be prioritized by increasing the budget from Rp139 trillion in this year to Rp193,7-Rp155 trillion for the next year.

“The aim is to support reforms in the health sector carried out by Ministry of Health, especially in providing national health insurance, increasing health preparedness, supporting the development of health infrastructure in regions, improving health services, and reduce stunting as well as to eradicate priority diseases including tuberculosis,” Sri Mulyani said.

In addition, the Government allocates Rp595,9-Rp563,6 trillion for education budget in 2023, a rise from Rp542,8 trillion in 2022. The budget will be used, among others, for scholarship to 20 million students, the Smart Indonesia Card program for 975,3 thousand college students, for paying professional allowance to 264,000 non-civil servant teachers, and school operational assistance including to early childhood education schools (PAUD).

The Government will also still allocate a significant budget for infrastructure in 2023 that will range between Rp367-Rp402 trillion to accomplish various priority programs, including housing, water treatment, wastewater treatment, Cirebon-Semarang gas transmission pipelines, irrigation network, as well as connectivity infrastructure and IT-related infrastructure such as satellites and base transceiver station towers.

Sri Mulyani also stated that in the 2023 State Budget, the Government reserved Rp27-Rp30 trillion for the development of the new capital (IKN) of Nusantara. The budget is focused on the development of the Central Government Core Area (KIPP).

On the indicative ceiling spending for ministries / institutions, she estimated it will reach Rp977.1 trillion.

“We will continue to control ministries / institutions operational expenditure costs next year so it can remain efficient and under control so that the budget would be allocated for productive expenditures,” the Minister said.

Sri Mulyani further said that state expenditure in 2023 is designed to be in the range of 14.09-14.71 percent of GDP or Rp2,818.1 to Rp2,979.3 trillion, which consists of Central Government spending in the range of Rp2,017.9 to Rp2,152.5 trillion and transfers to the regions in the range of Rp800.2 5 to Rp826.7 trillion. With these figures, the APBN deficit in 2023 will be in the range of Rp562.6-Rp 596.7 trillion or 2.81-2.95 percent of GDP.

“President Joko “Jokowi” Widodo has ordered us to continue maintaining confidence in fiscal and monetary policies so that confidence and economic remain stable and investment will continue be on the rise for Indonesia will continue to improve its investment climate,” she remarked. (FID/UN) (GWH/EP)