Sri Mulyani Calls for Vigilance of Recession This Year Despite Indonesia's Economic Recovery

TEMPO.CO, Jakarta - The Minister of Finance Sri Mulyani Indrawati stated that Indonesia's economic recovery occurred evenly in all sectors. The Transportation sector acquired 10 percent and grew 21 percent in the third quarter of 2022. Then, the accommodation, food, and beverage sector acquired 15 percent and increased by 11.3 percent.

"This is why Indonesia's GDP level is already 6.6 percent above pre-pandemic level," said Sri Mulyani via upload on the official Instagram account @smindrawati, Monday, January 16, 2023.

"Regionally, it can also be seen that all islands and regions are experiencing an economic recovery," she added.

Sri Mulyani mentioned that Sumatra's economic growth in 2022 has reached 4.71 percent and Kalimantan's has grown to 5.67 percent. Sulawesi grew 8.24 percent, Maluku 7.51 percent, Bali and Nusa Tenggara 6.69 percent, and Java 5.76 percent.

The growth also decreases the rate of unemployment from 7.1 percent to 5.9 percent and poverty from 10.2 percent to 9.5 percent in 2022.

The 2022 State Revenue and Expenditure Budget (APBN), Sri Mulyani continued, has boosted the economic recovery to become strong and maintain its stability. State Expenditures grew 10.9 percent, reaching Rp3,090.7 trillion. State revenue also increased by 30.5 percent, reaching Rp2,626.4 trillion. Meanwhile, the deficit experienced a decrease from 4.5 percent to 2.38 percent or dropped to Rp310 trillion.

With these achievements, Sri Mulyani stated that 2023 must be faced with optimism and vigilance as instructed by President Joko Widodo. "Optimistic because our achievements are outstanding in 2022. Be vigilant because, in 2023, one-third of the world or 43 percent of countries will experience a recession according to the IMF," said Sri Mulyani.

Therefore, Sri Mulyani said the momentum for economic recovery must be maintained. One of the approaches is increasing the acceleration of state expenditure and prioritizing domestic products.

As for 2023, several important government spending includes government spending on food security worth Rp104.2 trillion, social protection Rp476 trillion, and energy security Rp341 trillion. Then infrastructure spending is about Rp392 trillion, health is Rp178 trillion, education is Rp612 trillion, and the election is Rp21.86 trillion. Last is spending on the new capital city IKN preparation which is worth Rp23.9 trillion.

"Those are the important expenditures in 2023 which are expected to maintain the Indonesian economy from a threat that occurs on the global scale, both due to rising prices, inflation, and the weakening of economies in several countries," said Sri Mulyani.

RIRI RAHAYU | IMAJI LASAHIDO (INTERN)

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