Economic recovery is not a smooth and easy process. There are several challenges that can cause shocks in the recovery path
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati believes numerous challenges still exist that can potentially shock the government's efforts in the path to economic recovery from the COVID-19 crisis.

"Economic recovery is not a smooth and easy process. There are several challenges that can cause shocks in the recovery path," Indrawati noted at the Open Session of the Academic Senate of the Sebelas Maret University in Solo, Central Java, Friday.

Indonesia has begun to experience recovery and is returning to the path to development goals and ideals, Sri Mulyani Indrawati noted.

The recovery began as a result of the government's efforts to conduct structural, fiscal, and state budget reforms, among others.

Related news: Taxes collected in spirit of justice, mutual cooperation: Minister

The minister drew attention to several challenges that can potentially shake up Indonesia's recovery path, including the transition from a pandemic to an uneven endemic in various regions in Indonesia.

In addition, other challenges are the occurrence of a geopolitical turmoil that led to an extreme spike in commodity prices and global supply chain disruptions that created high global inflationary pressures.

Related news: Endowment funds for education reaches Rp99.1 trillion: Indrawati

The threat of climate change is also a challenge that can likely shake the path of recovery, so it must be responded to early and carefully in terms of technology, policy, and finance.

She also ensured that the government always maintains health and reliability of the state budget that is an important instrument for development and protects Indonesia from the impacts of a deeper crisis.

Efforts to maintain health of the state budget are made, so that this instrument can continue to be a solution in dealing with various development challenges and turmoil as well as the threat of crises that could likely occur in future.

"Reforming the state budget and state finances is a necessity," Sri Mulyani Indrawati remarked.

Related news: Indonesia proven capable of capitalizing on momentum for reform

Related news: Global upheaval poses challenge to carbon market development: minister

Translator: Astrid F, Azis Kurmala
Editor: Fardah Assegaf
Copyright © ANTARA 2022