Finance Minister Reveals Gov’t Policies to Face Global Uncertainties

Minister for Finance Sri Mulyani (Photo: PR of Cabinet Secretariat/Rahmat)

Minister for Finance Sri Mulyani Indrawati stated that in the midst of current global uncertainties, Indonesia should keep up the momentum of economic growth. Situations such as global financial market dynamic, geopolitics tension in Palestine, and the surging food prices due to the El Niño make impact to the global economy, including Indonesia.

“We keep monitoring this situation. We will continue to improve, especially in some factors that affect the lower class, the bottom 40 percent. We see that the rice price has increased quite significantly in the last six months, and this has also caused volatile food inflation, making it one of the biggest contributors,” the Finance Minister said, as quoted from the website of Ministry of Finance, on Tuesday (11/07).

In controlling the rice price, the Finance Minister said that the Government through National Food Agency cooperated with the National Logistics Agency continues to ensure adequate supply until the next crop and harvest season.

Besides, the Government has also distributed cash assistance (BLT) to keep people’s purchasing power. The assistance has been received by 18.8 million beneficiary families (KPM) amounting to Rp200 thousand per month. The budget allocated is as much as Rp 7.52 trillion.

Also, the Government continues its effort to increase the economic growth through a swift distribution of People’s Business Credit (KUR).

“Coordinating Minister for Economic Affairs, some ministers, and I have monitored that the KUR distribution has been weakening. It is due to some changes in policies, so now we will ask the banking industry to accelerate the KUR distribution,” she explained.

The Minister added that until September 2023, the KUR that has been distributed amounted to Rp107 trillion from the targeted amount of Rp297 trillion. Therefore, the Government will accelerate the KUR distribution in the last three months.

Another measure done by the Government is providing support for commercial houses. The Government gives incentive by paying the added value tax (PPN DTP) for houses with the price up to Rp2 billion. In addition, the Minister said that supports are provided to cover the administration fee for the low-income people as much as Rp4 million per house until December 2024, and Rp20 million per house for the poor people through Integrated Welfare House done by Ministry of Social Affairs.

“We hope that the policy package will surely boost our economy,” she remarked. (UN)(AW/LW)