Finance minister Sri Mulyani Indrawati has forecast the state revenue in 2021 to grow 16.3 percent (yoy), or Rp1,916 trillion, from the target in the state budget (APBN) of Rp1,743.6 trillion.
Last year, the realisation of state revenue had reached Rp1,647.7 trillion, or 96.9 percent of the target of Rp1,699.9 trillion, or down 15.9 percent (yoy) of Rp312.8 trillion from 2019.
“We project that the state revenue will grow 16.3 percent. The nominal value is around Rp1,916 trillion. We will see later. We will identify the components,†Indrawati stated at the 2021 CEO forum in Jakarta on Thursday.
Until October 2021, state revenue had jumped by 18.2 percent, from Rp1,277 trillion during the corresponding period in the previous year, to reach Rp1,510 trillion.
To this end, the minister spoke of the government’s intent to pursue the growth projection of 16.3 percent in the state revenue in the last two months by mapping out its supporting components.
Indrawati explained that public consumption, which was one of the components driving state revenue, was still quite resilient even amid the surfacing of the Delta variant of COVID-19.
According to the minister, the Delta variant has reduced the people’s consumption, which was initially above five percent to only some one percent.
Meanwhile, in terms of state spending, Indrawati noted that President Joko Widodo (Jokowi) had appealed to all ministries and agencies (K/L) and local governments to continue to encourage spending according to the budget.
The realisation of state spending until October 2021 had reached Rp2,058.9 trillion, or grew 0.8 percent, as compared to Rp2,041.8 trillion during the corresponding period in the previous year and had reached 74.9 percent of the target of the state budget worth Rp2,750 trillion.
Through this effort, the government estimates that this year’s APBN deficit will only be 5.2 percent to 5.4 percent of the gross domestic product (GDP), or Rp873.6 trillion.
The projected budget deficit is lower than the assumption in the 2021 APBN Law of 5.7 percent of the GDP, or Rp1,006.4 trillion.
Overall, the minister is optimistic that recovery in the fourth quarter would run well and be able to accelerate despite a slump in the economy in the third quarter due to the Delta variant.
“The momentum continues to accelerate, so we are quite optimistic that the fourth quarter would be good,†she stated.
President Jokowi had earlier called for expediting the realisation of the state (APBN) and regional budgets (APBD) in order to offer an economic stimulus to the public.
“This month is November 2021, and we will soon enter December 2021. Expedite the realisation of APBN and APBD. When it comes to APBN, ministerial and non-ministerial government institutions must stay focused on expediting its realisation,†Jokowi remarked.
The president further urged Home Affairs minister Tito Karnavian to monitor the realisation of APBD. The home affairs minister must convince regional heads that the realisation of APBD is crucial to boosting economic activities, especially in the regions concerned, the president noted.
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Category: Indonesia
