Indonesia Continues to Boost National Economic Recovery in 2022
Amidst the uncertainty of global and regional economic recoveries, and emerging of new COVID-19 variant, Indonesia through the 2022 State Budget will continue to intensify measures to boost national economic recovery, according to Minister of Finance Sri Mulyani Indrawati.
The Minister said that next year the Government must address several risks, such as commodity price volatility, inflation and implication of the increase in interest rate in developed countries, China’s economy rebalancing, disruption and supply chain issue, and geopolitical dynamic.
“Nevertheless, an effective [COVID-19] pandemic handling which has successfully kept delta variant under control faster, boosted economic activities in the fourth quarter of 2021,” she said at the handover of the Budget Implementation List (DIPA) and List of Budget Allocation for Regional Governments and Village Funds 2022, Monday (29/11), at the State Palace, Jakarta.
The Minister went on to say that to handle the pandemic and boost national economic recovery, the 2022 State Budget was drawn up to remain expansive to continue exercising countercyclical function while still paying close attention to risks and the importance of maintaining fiscal sustainability for medium term. The 2022 State Budget was also drawn up and stipulated by taking into account transparency, check and balance, and good legislative process.
In a bid to support economy recovery, the Government will continue implementing structural reforms through institutional strengthening, deregulation, debureaucratization, and sectoral support that improve infrastructural connectivity and mobility.
In term of state finance, tax reform is carried out through the Law on Harmonization of Tax Regulations that places tax as the important source of state revenue to be used to support medium- and long-term development projects. Budgeting reforms for 2022 aimed at boosting a more efficient expenditure, strengthening synergy between central and regional governments, focusing priority programs, and anticipating the uncertainties.
“Out of the total budget in the 2022 State Budget amounting Rp2,714.2 trillion, Rp769.6 trillion budget allocated for regional governments and village funds is handed to governors and regional heads,” she added.
On the same occasion, President Joko “Jokowi” Widodo symbolically handed over Budget Implementation List (DIPA) and List of Budget Allocation for Regional Governments and Village Funds (TKDD) 2022 to the heads of ministries/institutions and regional governments as the guideline to realize the 2022 State Budget.
“We expect the 2022 DIPA and TKDD to be followed up by ministries/institutions. Thus, the budget realization can be made in early 2022 and the benefit will be felt by the people,” the Minister remarked. (Ministry of Finance PR/FID/UN) (RAS/LW)