Finance minister highlights challenges to fiscal policy

Finance minister highlights challenges to fiscal policy

Finance Minister Sri Mulyani Indrawati delivered a general lecture at the Faculty of Economics and Business of University of Indonesia (UI) in Depok, West Java, on Wednesday (Nov 27, 2019). (Antara News/Dewa Wiguna)

The global economy is weakening. It has an impact on Indonesia. Since corporations saw their turnover declining, the amount of their tax payments declined too.
Depok, W Java (ANTARA) - Finance Minister Sri Mulyani Indrawati, at a general lecture at the Faculty of Economics and Business of University of Indonesia (UI), Wednesday, spoke of challenges to Indonesia's fiscal policy amid the global economic uncertainty.

"The global economy is weakening, and this has had an impact on Indonesia. Since corporations saw their turnover declining, the amount of their tax payments declined too," she remarked at the Soeria Atmadja Auditorium of the UI campus in Depok, West Java.

The fiscal policy, either in the form of state revenues, including taxes and financing or expenditures, has an impact on the chain of supply and demand, she pointed out.

The taxes and financing are not merely collected as state revenues but are also set aside as fiscal incentives for the business world, among others, she stated.

The policy is expected to boost economic growth and push investment, she remarked.

Related news: Indonesia to build sustainable economy: Sri Mulyani

She further drew attention to the country's fiscal policy, especially from the standpoint of the management of the State Budget (APBN).

The budget allocations are directed towards improving public welfare, especially pertaining to education and health, she remarked.

The fiscal policy in the State Budget also focuses on anticipating the global economic turmoil and geopolitics that cast a pall on the world, she stated.

The fiscal policy is directed towards main priority programs, comprising human resources and infrastructure development, among others, she explained.

"Indonesia’s competitive edge is still lagging behind that of our neighbors. Infrastructure, institutions, labor force, and health care are the best market measurements. This is our homework that does not rest with one minister and one region but the entire Republic of Indonesia," she added.
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