State revenue from almost all sectors has reached the target, even the non-tax revenue has surpassed its target, hence all stakeholders have played significant roles
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has said he is optimistic of the 2021 state budget deficit reaching 5.4 percent, lower than the previous target of 5.7 percent of the gross domestic product (GDP).
"State revenue from almost all sectors has reached the target, even the non-tax revenue has surpassed its target, hence all stakeholders have played significant roles," Hartarto noted at the Sherpa Track-Finance Track G20 event here on Wednesday.



The increased state revenue was supported by expansive public consumption and more particularly, the vehicle and property tax stimulus, he said.


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The policy also boosted the manufacturing sector, as reflected in the Manufacturing Purchasing Managers' Index (PMI), which has remained above 51 recently, or in a more expansive position than before the COVID-19 pandemic, he pointed out.



Indonesia's PMI declined to 53.9 in November 2021 from a record high of 57.2 a month earlier, the third straight month of growth in factory activity, he said.



Additionally, Indonesia was ranked 12th out of 40 countries in terms of its state budget deficit, he added.


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Indonesia's rankings in terms of other fundamental economic indicators are also good, including the current account deficit (18th), foreign exchange reserves (20th), inflation (5th), foreign debt (21st), and the vulnerability index (15th), he said.



"This means that we don't need to panic. Even though there will be a change in the US central bank's (policy rate), we have enough cushion to hold it back," he said.



The Indonesian banking capital resilience is adequate to face global pressures, Hartarto asserted.


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Translator: Agatha Olivia V, Sri Haryati
Editor: Fardah Assegaf
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