Gov’t to Focus on Priority Programs in Drawing Up 2024 State Budget

Minister of Finance Sri Mulyani (left) is about to attend a limited meeting on the Macroeconomic Framework and the Principles of Fiscal Policy (KEM PPKF) 2024, at the Presidential Office, Jakarta, Monday (02/20). (Photo by: PR of Cabinet Secretariat/Rahmat)

The Government will focus on priority programs in drawing up 2024 State Budget as it will be the last year of President Joko “Jokowi” Widodo’s terms of office.

The statement was made by Minister of Finance Sri Mulyani after joining a limited meeting on the Macroeconomic Framework and the Principles of Fiscal Policy (KEM PPKF) 2024, at the Presidential Office, Jakarta, Monday (02/20).

She said that the Government’s short-term focuses for 2024 are eradicating extreme poverty and reducing stunting rate by three percent.

“Efforts to eradicate extreme poverty to zero percent will be made in 2024. This means the poverty, in general, will also decline. In term of the budget, it will be set as a priority for this year and next year [budget years],” she said.

As for stunting reduction, the Minister confirmed that President Jokowi had ordered regional heads to reduce stunting by three percent. Therefore, extra hard efforts and budget allocation are needed.

In investment sector, Sri Mulyani said that the Government will bolster support to increase investment in 2023 and 2024.

“This will be made through amendment to several regulations. In that regard, [the Government] in 2024 will focus on the implementation of Job Creation Law, Financial Sector Development and Reinforcement Law, Harmonization of Taxation Regulation Law, and Central and Regional Financial Law,” she said.

She went on to say that next year the Government will use fiscal incentives to support industrial transformation, for instance tax holiday super deduction for research and vocational sector, tax allowance particularly for natural resource-based industry which will support electric-based and lithium-based automotive sector.

The Government, she added, will focus on infrastructure development in a bid to improve productivity and competitiveness of Indonesia’s economy.

“By taking that into account, next year we will continue to maintain our budget. The state revenue will grow with higher tax ratio. We will maintain the state expenditure while still prioritizing the national agenda. Next year, deficit is projected to decline to a range of 2.16 percent and 2.64 percent of the gross national product (GDP) with primary balance of around zero,” she stated.

The Minister underscored that the country’s economic growth will be maintained at above five percent in 2023 and 2024. (RSF/AIT/SND) (RAS/LW)