Gov’t is Optimistic of National Economy in 2019

: Bank Indonesia Governor Perry Warjio, Finance Minister Sri Mulyani, and National Development Planning Minister/Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro represent the Government in a working meeting with Commission XI of the House of Representatives, in Jakarta, Wednesday (16/1). (Photo by: Finance Ministry PR Division)

Although the Government has affirmed its optimism in facing economic condition in 2019, they still reminded people the importance to remain vigilance amid the turmoil of a dynamic global situation.

“The Government’s optimism reflected from the 2018 State Budget which showed sound performance amid the global economic condition that is dynamic and can change rapidly,” Minister of Finance Sri Mulyani Indrawati said in a working meeting with Commission XI of the House of Representatives, in Jakarta, Wednesday (16/1).

Minister of Finance Sri Mulyani accompanied by Minister of National Development Planning /Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro, Central Bank Indonesia Governor Perry Warjio, and high-ranking officials from perspective institutions attended the event adopting a theme “The 2019 Economy Outlook” as the representatives of the Government.

Considering performance of the realization of the 2018 State Budget which displayed a strong economic growth across-the-board, Sri strongly believes that the Government will keep the momentum going in 2019. The Minister also said that the Government will always be aware of risk probability.

“Thus, vigilance remains high but at the same time we have optimism that is based on the 2018 performance which has created strong momentum,” the Minister firmly said.

The Minister explained that there are several indicators of the success of performance of the 2018 State Budget, among others: 1. State Revenue reached Rp1,942.3 trillion or 102.5 percent of the 2018 State Budget’s target; 2. State expenditure recorded at Rp2,202.2 trillion or 99.2 percent of this year’s target that is regulated in the State Budget Law; and 3. The State Budget deficit narrowed down to Rp259.9 trillion or 1.76 percent of the GDP and the primary balance has reached minus Rp1.8 trillion. The deficit is improved by 2.19 percent or Rp325.9 trillion compared to that in the 2018 State Budget Law, and lower by 2.51 percent than its outlook in 2017. It is recorded as the most significant drop of budget and primary balance deficit since 2012.

The Minister went on to say that the Government will keep the momentum of the 2018 State Budget realization going by implementing several strategic policies, among others; optimizing state revenues while maintaining an investment climate, improving the quality of state expenditure, implementing pro-people development policies such as reducing poverty, welfare distribution, and empowering State-owned Enterprises (SoEs).

Central Bank Indonesia Governor Perry Warjiyo also shared similar optimism that Indonesian economy in 2019 will be better than 2018.

“God willing, Insha Allah, our economic performance is projected to improve compare to that in 2018 with a higher economic growth and maintained macroeconomic stability. (Finance Ministry PR Division)

Translated by : Rany Anjany Subachrum
Edited by : Yuyu Mulyani