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Brunei
Tuesday, October 4, 2022
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Tuesday, October 4, 2022
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    Indonesia president unveils smaller budget for 2023

    JAKARTA (CNA) – Indonesian President Joko Widodo yesterday tabled a IDR3,041.7 trillion (USD206 billion) budget for 2023, while reminding the nation to remain cautious amid global uncertainties.

    He said in Parliament: “In the future, we must continue to maintain our prudence and vigilance.

    “The risk from global economic turbulence remains high,” he added, referring to how the Russia-Ukraine war and geopolitical tensions have resulted in supply chain disruptions.

    Jokowi also predicted that next year’s economic growth will be around 5.3 per cent since the country has managed to weather the COVID-19 pandemic.

    Indonesia’s economic growth was up 5.44 per cent year-on-year in the second quarter. It was the fastest growth rate in a year.

    The 2023 budget is less than this year’s budget, which stands at IDR3,106 trillion. This year’s budget has been adjusted upwards from the original IDR2,714 trillion figure.

    As of last month, the government forecasted this year’s budget deficit to be at 3.92 per cent of GDP. 

    Indonesian President Joko Widodo gestures during his annual speech at the Parliament in Jakarta yesterday, on the eve of the country’s Independence Day celebrations. PHOTO: AFP

    Jokowi said that next year’s budget deficit would be a maximum of three per cent for it to be financially sustainable for Indonesia. He said that the aim is around 2.8 per cent. 

    The 2023 budget would comprise IDR2,230 trillion for central government expenditure and IDR811.7 trillion for regional government expenditure.

    Some key priorities include the health sector, which would get IDR169.8 trillion and the social protection sector, which would get IDR479.1 trillion. 

    To improve human resources, Jokowi, as the president is popularly known, wants to set aside IDR608.3 trillion for education.

    “We must be able to capitalise on our demographic bonus and be ready to face technology disruptions,” said Jokowi.

    The development of infrastructure also remains a priority next year and IDR392 trillion is allocated for this.

    Jokowi forecasted next year’s inflation rate to be around 3.3 per cent. It currently stands at around 4.9 per cent. 

    He also predicted the unemployment rate next year to be between 5.3 per cent to six per cent, and the poverty rate to be between 7.5 per cent to 8.5 per cent. 

    Earlier yesterday, Jokowi said during his annual State of the Nation Address that Indonesia has successfully controlled the COVID-19 pandemic while growing its economy. 

    He added that Indonesia has managed to exercise global leadership amid geopolitical tensions. 

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