Sri Mulyani: 2022 State Budget Helps in National Economic Recovery

Minister of Finance Sri Mulyani and Coordinating Minister for Economic Affairs Airlangga Hartarto on a press statement, Monday (01/16), at Presidential Office, Jakarta. (Photo by: PR/Rahmat)

Minister of Finance Sri Mulyani Indrawati Monday (01/16) stated that the 2022 State Budget has become an indispensable instrument to maintain economic recovery momentum amid very volatile global situations.

“The 2022 State Budget is an element to stabilize and protect citizens and the economy from such situations so our country’s inflation is still relatively low,” Sri Mulyani said in her press statement after attending plenary cabinet meeting at the Presidential Office, Jakarta.

According to the Minister, Indonesia’s economic growth has started to recover and become stronger in the third quarter; and in the fourth quarter, she predicts it can grow stronger to 5 percent so that overall national economic growth grows around 5.2 to 5.3 percent.

“Investment has also recovered. Our exports remain high and our imports have also recovered to support the manufacturing industry,” Sri Mulyani remarked, adding that all sectors that were crumpled during the COVID-19 pandemic have also recovered.

Sri Mulyani further said that economic recovery is also occurring in all regions, citing examples that Sumatra region grew by 4.71 percent, Kalimantan region grew by 5.67 percent, Sulawesi region grew by 8.24 percent, Maluku region grew by 7.51 percent, Bali and Nusa Tenggara regions grew by 6.69 percent, and Java region grew by 5.76 percent as well as it also helped to reduce unemployment rate from 7.1 percent to 5.9 percent and poverty from 10.2 percent to 9.5 percent.

In addition, state spending grew by 10.9 percent to reach Rp3,090.7 trillion, while state revenue grew by 30.5 percent to earn Rp2,626.4 trillion. Meanwhile, tax revenues also improved, marked by corporate taxes which grew to 71.7 percent after previously declining at 37.9 percent. Employee income tax also rose to 14.6 percent and Value Added Tax (VAT) also grew to 24.6 percent, recovering strongly from the 15.3 percent contraction at the start of the pandemic.

“Also, our customs and excise from the export and import grew to 23.3 percent in the form of duties of export and import. While revenue in the form of non-tax also jumped to 28 percent,” she concluded. (MAY/UN) (GWH/HD/MUR)