Sri Mulyani: Government Focus on Priority Programs in Preparing the 2024 State Budget

Thepresidentpost.id - The Minister of Finance (Menkeu) Sri Mulyani emphasized that the government would focus on priority programs in compiling the 2024 State Revenue and Expenditure Budget (APBN), which is the last year of the administration of Indonesian President Joko Widodo (Jokowi).

"In accordance with the direction of the President that 2024 is the last year of the administration of President Jokowi and Vice President Kyai Haji Ma'ruf Amin, therefore various priority programs will be focused on implementation," said the Minister of Finance after attending the Limited Meeting (Ratas) which led by President Jokowi regarding the 2024 Macroeconomic Framework (KEM) and Principles of Fiscal Policy (PPKF), at the Presidential Office, Jakarta, Monday (20/02/2024).

The Minister of Finance outlined the short-term focus for 2024, namely eliminating extreme poverty or 0 percent and reducing the stunting rate to 3 percent.

"Reducing extreme poverty to 0 percent will be pursued in 2024, and this means that the overall total poverty will decrease and also the need for funding will be prioritized for this year and next year," explained the Minister of Finance.

As for reducing stunting, the Minister of Finance explained that President Jokowi had given directions to regional heads to reduce stunting by up to 3 percent.

"So these two things are extreme poverty in 2024 which must be 0 percent and then headline poverty is at 6.5 to 7.5. Meanwhile, stunting is expected to drop to 3.8 percent. This means that efforts are needed, additional efforts are hard, and budget allocations are provided for this year and next year," he said

Meanwhile, to increase investment in 2023 and 2024, Sri Mulyani ensured that the government would strengthen support in this field.

"From the investment side, the government also needs to increase support so that investment increases significantly this year and next year. This is done through various regulatory changes that have been achieved, so that the focus for 2024 will be on the implementation of the Job Creation Law, the P2SK Law, the Law on Harmonization of Tax Regulations, and the Law on Central and Regional Financial Relations," he explained.

Furthermore, the Minister of Finance added that the government's effort is to use fiscal incentives to support industrial transformation.

"We will also use fiscal incentives in the form of a tax holiday super deduction for research, for vocations, and also tax allowances in order to support various industrial transformations, especially those based on natural resources which strengthen the ecosystem of the automotive industry based on electronics, electricity and batteries. . This is one of the efforts that will be carried out this year and next year," said the Minister of Finance.

Furthermore, the Minister of Finance explained that the government would continue to focus on infrastructure to increase productivity and competitiveness of the Indonesian economy.

"With that basis, next year we estimate the budget will be maintained. On the one hand, state revenues will continue to grow with an ever-increasing tax ratio and state spending that will be maintained in a disciplined manner but with priorities in line with the national agenda. And for next year, we estimate the deficit will decrease to a level of 2.16 percent to 2.64 percent of GDP with a primary balance close to 0," he added.

In addition, the Minister of Finance also ensured that he would continue to maintain economic growth this year and next year so that it would continue to grow well like in 2022 with a figure above 5 percent.

"For next year, the momentum of the Indonesian economy which is currently quite strong will continue to be maintained so that Indonesia's good economic growth in 2022, namely economic growth at 5.3 percent, the momentum can still be maintained for 2023 and 2024," said the Minister of Finance.