Finance Minister Confirms State Budget Remains on Track
Minister of Finance Sri Mulyani during press conference of APBN KiTa, at the Ministry of Finance, Jakarta, Monday (09/23).
The performance of the State Budget (APBN) as of August 2024 remained on track and in line with the target set on the 2024 Bill of the State Budget, according to Minister of Finance Sri Mulyani.
She went on to say that budget performance, particularly the revenue performance in the same period showed an improvement. So far, the state has been collecting Rp1,777 trillion of revenue, constituting 63.4 percent of the target with 2.5 percent year-on-year (YoY) contraction.
“This shows an improvement in the state revenue contraction that is expected can be maintained until the end of this year so we can achieve the target,” she said in a press conference of APBN KiTa, a monthly publication issued by the Ministry of Finance on the State Budget realization and facts, Monday (09/23).
In addition, state expenditure realization has reached Rp1,930.7 trillion or 58.1 percent of the ceiling with a solid 15.3 percent YoY growth. The Minister stated that since the beginning of 2024, state expenditure has managed to achieve double-digit growth.
“The budget was spent to finance the general elections in early 2024 and to provide social assistances for El Nino impact,” she said.
Considering state revenues and expenditures, by the end of August the State Budget experienced a deficit amounting to Rp153.7 trillion or 0.68 percent of the GDP. However, the Minister said that the deficit was still in line with the 2024 Bill of the State Budget. Meanwhile, the primary balance recorded a surplus of Rp161.8 trillion.
The State Budget, as an important instrument, will be used optimally to maintain economic stability, protect the community, and support a sustainable growth amid global economic challenges.
Furthermore, Indonesia’s economy recorded a positive growth. Inflation rate could be maintained at 2.12 percent year on year supported by more controlled commodity prices. Trade balance still experienced a surplus for 52 consecutive months while export and import values reached US$23.6 billion and US$20.7 billion, respectively. However, it means that the surplus experienced a decline cumulatively.
“Indonesia’s economic growth still records a positive growth based on domestic factor that is indicated by our domestic consumption. Consumer consumption index stood at 124.4; it’s a significant level. This means consumers in our country still have confidence to do consumption activity,” she said adding that this trend is also reflected in the Mandiri Spending Index data that shows a rise to 277.6 and in real sales index that grows positively at 5.8.
On that occasion, Sri Mulyani warned all that Indonesia’s Purchasing Managers Index (PMI) starts to slip into contraction territory. Nevertheless, import growth of 9 percent and export growth are expected to rebound manufacturing activities. (PR of Ministry of Finance /DNS) (RAS/MMB)
