President Jokowi: 2023 State Budget Posture Must Remain “Vigilant against, Anticipative of, and Responsive to” a Host of Possible Scenarios

President Jokowi during the Presentation of the Government Statement on the Bill on the State Budget for the 2023 Fiscal Year and Its Financial Note before the Plenary Session of the House of Representatives of the Republic of Indonesia, in Nusantara Building, MPR/DPR/DPD RI, Senayan area, Jakarta, Tuesday (08/16). (Source: Screenshot)

President Joko “Jokowi” Widodo emphasized that the 2023 State Budget posture must have the capacity to minimize hesitation, revive optimism, and support development target achievements with high vigilance and caution.

It is stated by President Jokowi during the Presentation of the Government Statement on the Bill on the State Budget for the 2023 Fiscal Year and Its Financial Note before the Plenary Session of the House of Representatives of the Republic of Indonesia, in Nusantara Building, MPR/DPR/DPD RI, Senayan area, Jakarta, Tuesday (08/16) afternoon.

“The 2023 State Budget posture must remain “vigilant against, anticipative of, and responsive to” a host of possible scenarios that are highly dynamic and likely to cause turmoil. The posture of expenditure and revenue must be flexible and provide adequate fiscal space in order to effectively curb uncertainties,” President Jokowi said.

President jokowi added that the 2023 State Budget is a supportive and measured State Budget in facing a slew of possibilities.

“The fiscal posture for 2023 is also designed to strengthen the foundation of the economy in facing challenges, be it current challenges and future challenges. Hence, the fiscal policies for 2023 are directed to support measures to “Boost Productivity in An Inclusive and Sustainable Economic Transformation”, he said.

Furthermore, President Jokowi elaborated on the strategies adopted in the 2023 State Budget are as follows.

First, the 2023 State Budget is focused on five main agenda, namely (1) empowering advanced human capital to be productive, innovative, and competitive through improvement of education and health care system quality, as well as accelerating social protection system reforms; (2) accelerating infrastructure development that supports economic transformation, especially infrastructure development in the sectors of energy, food, connectivity, and Information and Communication Technology sectors; (3) intensifying an effective implementation of bureaucratic reform and regulation simplification; (4) revitalizing industry by encouraging industrial downstreaming to increase high added-value and export-based economic activity; and (5) encouraging the promotion and development of green economy.

Second, 2023 is a momentum to carry out quality fiscal consolidation so that fiscal management maintains a balance between countercyclical capability and control measures for financing risks.

“We continue to thoroughly and gradually carry out fiscal consolidation and reforms in a measurable manner. It starts from strengthening of state revenue, improvement of expenditure quality, and prudent financing management,” the President said.

The Head of State stressed that fiscal reforms in the revenue side are carried out through the optimization of revenue by tapping potentials, expanding tax base, improving taxpayer’s compliance, and optimizing asset management, and making service innovation.

“Therefore, tax ratio can increase, strengthening our fiscal space, maintaining investment climate, ensuring sustainability of industries, and protecting the people’s purchasing power,” he added.

Meanwhile, from the expenditure side, reforms are carried out through the enhancement of expenditure quality, carried out through expenditure control that is more efficient, more productive, and able to generate strong multiplier effects for the economy, as well as effective in supporting priority development programs and improvement of the people’s welfare.

“Innovation from the expenditure side is focused to drive flexible and prudent financing, through a more integrated Public-Private Partnership (PPP) in terms of infrastructure financing, strengthening of the Investment Management Institution’s role, as well as deepening of state bond market,” the President stated. (MAY/DND/FID/UN)(AW/LW)