Bappenas: State Budget Hike Not Effective Yet to Boost Economy



Markus Wisnu Murti

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  • The National Development Planning Agency (Bappenas) building.

    The National Development Planning Agency (Bappenas) building.

    TEMPO.CO, Jakarta - The National Development Planning Agency's (Bappenas) deputy for economic affairs, Bambang Prijambodo, criticized the effectiveness of the State Budget (APBN) realization every year, which he viewed as the main requirement to optimize the country’s development.

    Bambang mentioned this year’s state budget amounted to some Rp2,000 trillion, increasing five-folds since 2004 at Rp400 trillion. However, its performance must be revived and improved.

    “There are many questions surrounding the increased APBN. As I recall, the figure has soared five-folds since 2004, but its effectiveness requires improvement,” said Bambang during a national seminar at the agency's building, Jakarta, Monday, August 12.

    According to him, the annual state budget hike could not yet boost Indonesia's economic growth and improve the quality of supporting sectors, “especially in fostering the economy, alleviating poverty, and curbing inequality.”

    Bappenas' director for state finance and monetary analysis, Boediastoeti Ontowirjo, shared the same opinion that based on 2011-2018 data, the ballooning state spending was not in line with the increase in economic growth.

    Boediastoeti opined Indonesia’s economic growth could potentially be optimized by implementing multiple recovery efforts, viz. stepping up productive spending, recovering accountability, and upholding transparency in state expenditure management. “Also, there should be coordination between the central and regional governments for sure.”