Remarks of President of the Republic of Indonesia at the Handover of the Budget Implementation List (DIPA) and Transfer to Regions Allocation List for 2023 Fiscal Year, at the State Palace, DKI Jakarta Province, December 1, 2022
Assalamualaikum warahmatullahi wabarakatuh,
May peace be upon us all,
Greetings of Virtue.
Distinguished Heads and Leaders of the High State Institutions;
Distinguished Ministers of the Indonesia Onward Cabinet;
Distinguished Heads of Non-Ministerial State Institutions;
Distinguished Chief of the Indonesian National Police (Polri), Attorney General, Governors, Regents, and Mayors all over Indonesia;
Ladies and Gentlemen.
In the midst of global economic turbulence, alhamdulillah, our economy remains stable. In fact, Managing Director of the IMF said that Indonesia is a bright spot in a bleak world. This is thanks to our hard work. The inflation rate is still relatively under control at around 5 percent. I have been informed that it stood at 5.8 percent, lower than that of the average global inflation at above 10 percent. Some countries even reached more than 75 percent. Our economy also recorded a positive performance. In Q2 of 2022, our economy grew by 5.44 percent, while in Q3 of 2022 it grew better by 5.72 percent.
Our trade volume also recorded a positive growth by 58 percent, while our trade balance recorded a surplus for 30 consecutive months. It is something we should be grateful for. But once again, I need to remind you that we still have to remain vigilant. We still have to stay alert. Everyone must be aware of the current situation, especially global situation. The global economic situation is not normal; it is not in a good state.
Therefore, all of us must have a sense of crisis. We should be prepared for all possibilities that might occur. We must be ready for the things we cannot predict and calculate. Not only to able to survive, we also should be able to seize the opportunity.
To that end, once again, grand strategy, grand plan that we have prepared must be consistently carried out on the ground. Grand strategy aimed at responding to global economic challenges is represented in the 2023 State Budget, as Minister of Finance said earlier. The State Budget [must] be used as stability instrument to curb inflation. Even though all Governors, Regents, and Mayors have done it well including distribution and supply issues in their respective regions. The State Budget also serves as social protection instrument for vulnerable groups. The State Budget also must be able to encourage the sustainability of national economic recovery and structural reforms. To that end, the 2023 State Budget is focused on six points.
First, strengthening quality of human resources. I reiterate, the first point is strengthening quality of human resources.
Second, accelerating reforms on social protection system. It is aimed at improving social welfare integrated data through socio-economic registration.
Third, continuing the development of priority infrastructures, especially supporting infrastructure for economic transformation.
Fourth, developing infrastructure to boost new economic centers, including developing the Nusantara New Capital (IKN).
Fifth, strengthening industrial revitalization. This is vital, by encouraging downstreaming.
Sixth, actualizing bureaucratic reforms and simplifying regulations.
Ladies and Gentlemen,
All those points required strict monitoring on the ground. I order all ministries, heads of institutions, and regional governments to control spending in detail, monitor spending in detail, do not get stuck in a routine. I have also said many times to improve spending in local products, especially MSMEs’ products. I would like to remind all of you that ministerial programs must go hand in hand with other ministerial programs. Therefore, we must work in integrity, break down the silos, and join hands.
As for regional governments, governors, regents, and mayors, I ask you to pay attention to inflation rate movement in your respective regions from time to time, from hour to hour. Indeed, it is vital considering that inflation is an issue for all countries. Once again, please pay attention to inflation rate movement in your respective regions.
That concludes my remarks on this auspicious occasion. And I order all of you to accelerate the spending realization of the State Budget and the Regional Budget, especially capital spending and social spending.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh. (AP/MUR)