It is difficult since we are told to improve our achievement, but our budget was cut down by 50 percent.
Jakarta (ANTARA) - Investment Minister/Investment Coordinating Board (BKPM) Head Bahlil Lahadalia has proposed a budget of Rp1.88 trillion (US$128.52 million) to pursue the investment realization target of Rp1,250 trillion-Rp1,400 trillion (US$85.45 billion-US$95.7 billion) in 2023.

“Our investment target is increased to reach Rp1,250 trillion to Rp1,400 trillion in 2023. It is difficult since we are told to improve our achievement, but our budget was cut down by 50 percent," he remarked during a working meeting with Commission VI of the Indonesian House of Representatives (DPR RI) here on Friday.

In fact, the indicative ceiling budget of the ministry for the 2023 Fiscal Year was only Rp646.01 billion (US$44.16 million) that was allocated for the management support program, with a total of Rp314.3 billion (US$21.46 million) as well as for the investment program, worth Rp331.7 billion (US$22.67 million).

"Thus, we proposed an additional budget of Rp1.24 trillion (US$84.77 million)," the minister remarked.


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Lahadalia said the additional budget proposal was submitted since his side assessed that the indicative ceiling budget was not adequate to support the realization of the investment target, as it continued to rise to cover the development budget deficit.

According to the economic theory, if the investment target is raised, the budget provided to realize the target should also be increased, he noted.

Moreover, Lahadalia pointed out that the ministry’s indicative ceiling budget for the 2022 Fiscal Year was quite higher than the one given for the 2023 Fiscal Year, although the investment realization target was lower.

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"At the time, initially, the provided budget was only Rp715 billion (US$48.87 million), but after coordinating with the Finance Ministry and being approved by Commission VI of (DPR RI), we asked for an additional Rp600 billion (US$41.02 million)," he revealed.

Hence, the total budget of the ministry for the 2022 Fiscal Year was Rp1.30 trillion (US$88.87 million), as Rp328.2 billion (US$2.24 million) of the figure was allocated for the management support program budget, while the rest was allotted for the investment program.

Meanwhile, the initial investment realization target in 2022 was only Rp968.4 trillion (US$66.2 billion). Furthermore, the target was increased according to President Joko Widodo’s directives to Rp1,200 trillion (US$82.03 billion).

Furthermore, at the working meeting, Commission VI of the DPR RI approved the Investment Ministry’s budget proposal.

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Translator: Ade Junida, Uyu Liman
Editor: Fardah Assegaf
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