State budget backs up recovery and transition to normalcy: Minister

State budget backs up recovery and transition to normalcy: Minister

Finance Minister Sri Mulyani Indrawati at a national coordination meeting on COVID-19 handling and national economic recovery in Jakarta on Thursday, January 26, 2023. (ANTARA PHOTOS/Agatha Olivia Victoria/my)

Jakarta (ANTARA) - The state budget consistently supports regional institutions' efforts to strive for recovery in a bid to return to normalcy, according to Finance Minister Sri Mulyani Indrawati.

"State budget is flexible in catching up with the challenges faced by our country, so we expect that in 2023, Indonesia still strives for economic recovery. Thus, we are optimistic but still also keeping the stability and suppressing disparity," Indrawati noted at a national coordination meeting here on Thursday.

Hence, to encourage economic recovery in 2023, medical services should be expedited at the national and regional scope through regular programs, and social security -- particularly for vulnerable and poor sections of society -- should be given in order to maintain the people's purchasing power and improve the quality of human resources, she elaborated.

Economic recovery is pushed through several programs, such as MSMEs financing as well as the Regional Transfer and Village Budget to ensure improvement at the village scope, especially in terms of welfare and budget utilization.

Minister Indrawati affirmed that the 2023 state budget supports several aspects of development, such as human resources and infrastructure while concurrently functioning as anticipation in case something occurs.

Some Rp178.7 trillion (US$11.9 billion) of the state budget is allocated for the health sector this year, with Rp118.7 trillion (US$7.9 billion) for central government spending and Rp60 trillion (US$4 billion) for regions intended to address stunting.

Some Rp612.2 trillion (US$40.9 billion) was allocated for education. Of the amount, Rp23.71 trillion (US$1.6 billion) is for the central government, Rp305.6 trillion (US$20.4 billion) for regions, and Rp69.5 trillion (US$4.6 billion) is for other funding.

As for social security, the state budget allocates Rp476 trillion (US$31.8 billion), with Rp454.7 trillion (US$30.4 billion) for the central government and Rp17 trillion (US$1.13 billion) for regional transfer, as well as Rp4.3 trillion (US$288 million) for other funding.

"Social security is still pretty (ample) actually, even higher than 2022. Spending on social aid, education, and health aims to reduce disparity and to ensure that economic recovery can be maintained and has durability," she stated.

Moreover, Rp104.2 trillion (US$6.97 billion) is allocated as food security budget, with Rp81.7 trillion (US$5.5 billion) for central government spending and Rp 22.5 trillion (US$1.5 billion) for government spending.

Some Rp341.3 trillion (US$22.8 billion) allotted for energy security comprises energy subsidies and compensation worth Rp339.6 trillion (US$22.7 billion) and others, Rp1.7 trillion (US$113 billion).

Infrastructure budget of Rp392.1 trillion (US$26.2 billion) comprises central government expenditure of Rp211.1 trillion (US$14.1 billion) and Rp95 trillion (US$9.3 billion) for regions, with Rp86 trillion (US$5.7 billion) for other financing. Moreover, the defense and security budget is worth Rp316.9 trillion (US$21.2 billion) that is used for central government spending. 

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