JAKARTA (TheInsiderStories) – Finance Minister Sri Mulyani Indrawati sees Indonesia’ economic growth could touches the negative level at minus 0.4 percent to 2.3 percent in this year. Initially the government targeting the economic growth could reached 5.3 percent in this year.
“We and BI (Bank Indonesia) predicts that economic growth this year could be in the range of -0.4 to 2.3 percent because household consumption is only 1.6 – 3.2 percent, investment is estimating dropped from 6 percent can be negative, exports are also expected to be negative because imports have increased,” she told media through a video conference today (04/01).
On March 24, the minister has said, the government considered to revises the 2020 State Budget along with strong impact from COVID-19 impacts. She said, followed the current condition, most of major macro assumption will changes, including the possibility to widens the budget deficit.
President Joko Widodo has signed the presidential decree number 1 of 2020 to accomodated the plans and soon will send the stated budget revision to parliament soon.
“The 2020 state budget will surely undergo a major change, especially macro assumption. What we discussed with the council was to prepare rules in situations of urgency. That is why the government can propose regulations to replace the 2020 State Budget law,” said Indrawati.
In the official statement released on March 23, chairman of budget committee at the Indonesian parliament, M. Said Abdullah stated, the government needs to immediately revises Law Number 17 of 2003 concerning on State Finance to provide a relaxed budget deficit from 3 to 5.07 percent of GDP.
The regulations in lieu is needed by the government to readjust the existing bill. He also proposed, the government regulating the 2020 State Budget law and individual and corporate income tax act to accommodates the government needs to run the economic stimulus during the pandemic.
“The next goal is to ensure the implementation of the Social Savety Net program to help people’ lives,” he wrote by adding the third objective is to support the Micro, Small and Medium Enterprises and informal sectors to be able to survive facing difficult economic conditions.
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