Previously, he expected Q4 expansion at around 5.6 –5.7 percent as inflationary pressure eased and the recovery gained traction. The recent disasters, however, have pulled the projection down to about 5.5 percent.
“There’s always a possibility that disasters affect growth. I think the figure will still be above 5.5 percent,” Sadewa told reporters at the Parliament Complex here Thursday.
As a mitigation step, Sadewa said he is closely monitoring the financial system and is ready to inject liquidity into banks if needed.
“If it’s still not enough, I’ll prepare more money for the banks,” he said.
He added that the government is prepared to raise the National Disaster Mitigation Agency’s (BNPB) budget should disaster-response needs exceed current allocations.
On Monday evening (Dec. 1), Sadewa said BNPB still has sufficient ready-to-use funds for emergency operations. “BNPB still has around Rp500 billion (about $30 million) available,” he told reporters.
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Still, he acknowledged the potential need to expand the operational budget, given the scale of the disasters across three provinces. The mechanism for allocating an Additional Budget (ABT), he said, can be activated any time.
Sadewa urged BNPB to submit a request immediately if its emergency funds run low, adding that the Finance Ministry would fast-track the ABT disbursement once submitted.
He said any additional allocation would come from the disaster-response reserves in the state budget.
“If we need more funds, we’re ready to add them, and the money is already in the budget,” he said.
Sadewa stressed that Indonesia’s fiscal capacity remains strong enough to finance disaster-response measures, including rehabilitation programs and social assistance for affected communities.
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Translator: Imamatul Silfia, Katriana
Editor: Rahmad Nasution
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