However, it should be (a reason to be) concerned that at a certain point, the commodity prices will be at their maximum point and cannot continue rising.
Jakarta (ANTARA) - The 2023 state budget draft (RAPBN) presented by President Joko Widodo (Jokowi) is optimistic, but still realistic, chairperson of the Budget Committee (Banggar) of the House of Representatives (DPR), Said Abdullah, has said.

“The President has concluded that our spending next year will be Rp3,041.7 trillion (US$205.5 billion). I think the President is optimistic that it (the figure) can be achieved but he is vigilant (against future economic challenges)," he remarked at the Parliamentary Complex here on Tuesday.

The domestic and global economy sectors have many challenges, he noted.

For instance, by mid-2022, Indonesia recorded a state budget surplus of Rp106 trillion (US$7.16 billion) due to the soaring price of a number of the country’s main export commodities, he said.

"However, it should be (a reason to be) concerned that at a certain point, the commodity prices will be at their maximum point and cannot continue rising. Later, they will get stuck and decline,” he pointed out.

Hence, the 2023 RAPBN was drafted by the government and the legislature to serve as a shock absorber to reduce the impact of inflation or an economic crisis in the future, he added.

In his speech on the 2023 state budget on Tuesday, President Widodo said that the budget will be alert, anticipatory, and responsive to various possible dynamic economic scenarios that have the potential to cause economic instability.

The 2023 state expenditure and revenue should be flexible and provide adequate fiscal space to serve as shock absorbers to anticipate economic uncertainty, he added.

“The 2023 state budget is a supportive and measurable state budget to face various possibilities," he remarked.

In the 2023 RAPBN, the state expenditure is set at Rp3,041.7 trillion (US$205.5 billion), while the revenue is targeted to reach Rp2,443.6 trillion (US$165.1 billion).

Furthermore, the national economic growth is estimated to reach 5.3 percent, while inflation is expected to be maintained at about 3.3 percent.

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Translator: Kuntum Riswan, Uyu Liman
Editor: Suharto
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