JAKARTA (TheInsiderStories) - Rating and Investment Information Inc., (R&I) maintained Indonesia’ sovereign credit rating at BBB+ with a stable outlook. The agency affirmed the ranking by considering that Indonesian economy will grow to pre-COVID-19 levels in the next one to two years.
While, the government’ structural reforms are expected to boost potential economic growth in the medium and long term, adds by the report released on Thursday (04/22). The agency also rated, the government debt ratio remains low amid increasing fiscal pressures.
And, the fiscal policy discipline pursued so far will encourage the improvement of the fiscal balance in the next few years. R&I also sees the economic resilience to external sector shocks was maintained, supported by policy responses from the government and Bank Indonesia as well as adequate foreign exchange reserves.
On Thursday, minister of finance, Sri Mulyani Indrawati, reported the 2021 State Budget deficit during the first quarter (1Q) of 2021 was Rp144.2 trillion (US$9.94 million) or equivalent to 0.82 percent of gross domestic product (GDP). In this year, the government is keeping the deficit targets 5.7 percent of total GDP.
The positive signed for the economic recovery was showed by the ministry or agency spending, were rose 91.6 percent from Rp35.1 trillion in 1Q of 2020 to Rp63.5 trillion in 1Q of this year. She also explained that the highest expenditure was health ministry, with total spending of Rp15.1 trillion, up 534.1 percent from the same period of last year of Rp2.4 trillion.
The increase in spending by the ministry was fueled by spending on vaccines with a budget of Rp5.8 trillion. With this huge budget, as of April 20, 2021, there have been a total of 17.2 million doses of vaccine injected into the public. The ministry paid treating 99,000 COVID-19 patients with costs of Rp6.9 trillion.
The the second highest expenditure is the cooperatives and SMEs ministry which recorded of Rp6.4 trillion or an increase of 761.9 percent from 2020 of Rp700 billion for 6.6 million micro entrepreneurs. Then, the religion ministry has spent Rp5.3 trillion or an rose by 9.5 percent in annual basis from Rp4.9 trillion.
Then, public works and public housing ministry spending amounted to Rp5.4 trillion, jumped 178 from Rp1.9 trillion in 2020, which is dedicated to maintaining road and network infrastructure worth Rp. 1.1 trillion.
US$1: Rp14,500
Written by Editorial Staff, Email: theinsiderstories@gmail.com
