Introductory Remarks of President of the Republic of Indonesia at Plenary Cabinet Meeting on Evaluation of the 2022 State Budget and the 2023 Budget and Program Planning, at the State Palace, Jakarta, January 16, 2023

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullah wabarakatuh,
Good afternoon, may prosperity be upon us all,
Om Swastiastu,
Namo Buddhaya,
Greetings of virtue.

Distinguished Coordinating Ministers, Ministers, Chairpersons and Heads of Institutions in attendance.

Today is the first Plenary Cabinet Meeting in 2023.

Firstly, I want to recall to 2022. Alhamdulillah, I saw many positive achievements in the midst of external pressure, in the midst of global crises that pose risks to all countries. We went through 2022, a turbulent year, well with 5.72 [percent] of economic growth in Q3. Maybe, the annual average will decrease, I think, at 5.2 or 5.3 [percent].

Also, if we look at inflation rate, we can control it at 5.5 percent. This is also a very good achievement. I also ask to continue efforts to suppress inflation. Apart from the monetary instruments at BI (Bank Indonesia), I also order Minister of Home Affairs to carry on with it so that the regions can jointly participate in suppressing inflation, so that we can suppress it to the lowest possible.

Then, the state revenue also grew 30.36 percent. This year we will still be in a position that is not easy. It will still be a trial year for all countries in the world, due to the increasing geopolitical pressure and the weakening of the world economy, especially the big countries, such as the EU, China, and the United States. As their economy weaken, it will also affect ours since our exports value to those countries is very large. We have to be careful.

The projected world economic growth has also decreased from the previous figure of 2.9 [percent]. It is gradually reduced to 1.7 percent. This is a projection from the World Bank. So, this is a challenge for us, but because we were able to get through 2022 well, God willing, this will also be possible in 2023.

Most importantly, we must respond quickly to any changes in the world. The policies that we implement must follow the world’s dynamics. We hope that our exports will still be good, our investment will still be good, then we will also continue to strengthen the downstream because this will have a broad impact on employment opportunities for our people and will also increase foreign exchange for the country.

Secondly, I ask that the 2023 State Budget to be focused on productive activities and programs, especially related to job creation and poverty alleviation. The 2023 State Budget must be focused to resolve national priority [issues] including reducing stunting rate, eradicating extreme poverty, achieving food security, as well as [organizing] agendas ahead of general elections.

In addition to the Transfer to Region and Village Fund (TKDD), I called for budget optimization of TKDD to boost economic growth in the regions. Don’t let the transferred funds not have the effect of boosting economic growth in the region. The Regional Budget must also in line with the State Budget and must be in sync with national priorities as I said earlier many times, especially related to people’s economy, export, as well as investment.

Lastly, we must continue to strengthen the political stability, democracy, legal certainty, a sense of justice, as well as upholding human rights. This morning I asked all relevant ministers, especially from a human rights perspective, to follow up on what I announced last week. All ministries should jointly follow up on past gross human rights violations.

Regarding inflation, once again I order all stakeholders to work on inflation along with COVID-19 issues. Everyone should work together. We must joint efforts to curb the inflation so that the figure will remain under five percent. After inspecting markets, I am sure that noticing price stability and seizing the opportunity [to maintain inflation] is easy if we work together like what we have done to curb COVID-19 pandemic in our country.

That concludes my remarks.

I thank you.

Wassalamu’alaikum warahmatullah wabarakatuh.

(EST/LW)