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Global Uncertainties in 2017 to Affect Economy: Minister

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8 December 2016 07:42 WIB

Finance Minister Sri Mulyani. TEMPO/Imam Sukamto

TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati has predicted that uncertain global conditions will significantly affect Indonesia`s economy in 2017.

"Global conditions greatly affect Indonesias economy now, and this trend is predicted to continue in 2017," Minister Sri Mulyani said on the occasion of President Joko Widodo (Jokowi) handing over the Development Budget Allocation Lists at the State Palace on Wednesday.

Sri Mulyani claimed the State Budget 2017 (APBN 2017), which was endorsed by the House of Representatives at the end of last October, was drafted when the country was still facing strongly challenging internal and external conditions.

"These conditions included the United States economic conditions, the election of Donald Trump as the US president, the monetary policies of advanced states, and the economic condition of China," she stated.

The minister explained that in response to the internal and external conditions, the government would be forced to change its distribution of the 2016 revised stage budget.

"The government made the change to maintain the credibility of the fiscal instruments by strengthening Indonesias economic foundation. It was done to protect the economy from being shaken by (economic) turmoil," she asserted.

She said the APBN 2017 was drafted from a prudent and optimistic perspective. "This is paramount for maintaining the momentum, but the prudent aspect should continue to be observed. We must be ready to face global uncertainties that should be viewed as an opportunity to serve the interests of the state."

Sri Mulyani confirmed the government had allocated in the APBN 2017 a Regional Incentive Fund (DID) amounting to Rp7.5 trillion. The funds will be assigned to 83 regional governments that displayed strong performance.

"The (move) is expected to encourage regional governments to continue improving their financial management performance in providing basic services and improving the prosperity of the people," the minister noted.

She mentioned that the number of DID recipients in 2017 had reached 317, rising from 271 in 2016.

"The highest allocation for a DID recipient has also increased from Rp45 billion in 2016 to Rp65 billion in 2017," she added.

ANTARA




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