Sri Mulyani Preps Rp1tn to Cut Current Account Deficit

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Markus Wisnu Murti

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  • Finance Minister Sri Mulyani. TEMPO/Tony Hartawan

    Finance Minister Sri Mulyani. TEMPO/Tony Hartawan

    TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati said the government had allocated a state capital injection (PMN) worth Rp1 trillion in the State Budget in a bid to strengthen the current account balance. According to her, the funds will be given as a policy breakthrough to boost exports and curb imports.

    "Specifically oil and gas imports through investments in state-owned enterprises," said Sri Mulyani at a joint working meeting with the House of Representatives' (DPR) Finance Commission at the Parliament Complex, Jakarta, Monday, December 2.

    Bank Indonesia recorded the current account deficit in the 2019's third quarter amounted to US$7.7 billion or 2.7 percent of the Gross Domestic Product (GDP), which was lower than that of in the previous quarter at US$8.2 billion or 2.9 percent of GDP.

    The ministry’s state asset director-general, Isa Rachmatarwata, said the funds would be disbursed to state-run companies. However, he stopped short of detailing the names of the firms. "We are still discussing it," Isa said.

    According to Isa, state firms that will receive the capital injections are those capable of producing the capacity so that Indonesia will no longer import commodities. "Or [those who can] trim imports or find import substitution."

    On another occasion, President Joko “Jokowi” Widodo quipped that many people were happy should Indonesia keep importing oil, which caused the country’s current account deficit (CAD) issue to linger to date.

    CAESAR AKBAR | AHMAD FAIZ