State budget essential to develop digital transformation: Minister

State budget essential to develop digital transformation: Minister

Finance Minister Sri Mulyani Indrawati during the "Digitization as Corruption Prevention Medium" webinar in Jakarta, Wednesday (August 3, 2022). ANTARA/Astrid Faidlatul Habibah.

Digitization has broad benefits, and the state budget is an essential instrument to continue to develop Indonesia's economic digitization transformation foundation
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati stressed the importance of the state budget as the foundation of Indonesia's digital transformation.

"Digitization has broad benefits, and the state budget is an essential instrument to continue to develop Indonesia's economic digitization transformation foundation," Indrawati stated at the "Digitization as Corruption Prevention Medium" webinar here, Wednesday.

The minister said that budget cuts during the COVID-19 pandemic had affected all government ministries and institutions, except those working in the health and digital transformation sector.

Despite the COVID-19 pandemic, the government decided to increase the digital transformation budget, as residents were compelled to adopt digital technology in various aspects of their life due to restriction in pandemic-related activities, she stated.

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Continued investment in the digital transformation sector also demonstrated the government's commitment to bolstering digital development, she pointed out.

"This is a certainty that we could no longer delay and sacrifice even during the pandemic, and we must instead accelerate investment (in the sector)," Indrawati stated.

She pointed out that the Ministry of Communication and Informatics is one of the only several government ministries whose budget continues to increase through the years.


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While the ministry's budget was only Rp20 trillion (US$1.34 billion) in 2019, the budget in 2021 and 2022 are Rp26 trillion (US$1.74 billion) and Rp27 trillion (US$1.80 billion) respectively, the minister stated.

The ministry's budget will be disbursed to develop the digital infrastructure foundation, including developing 4G BTS in some 4,200 villages and digital infrastructure in remote and border regions, to ensure residents can enjoy digital access.

The development in digital transformation is also an effort to reduce corrupt practices in the government, as per President Joko Widodo's instruction, she stated.

"This is consistent with the president's instruction that opportunities for corrupt practices in transactions can be suppressed through development of the digital platform," Indrawati emphasized.

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