Indonesia to prioritise State budget for economic recovery efforts

Head of the fiscal policy agency under Indonesia’s Ministry of Finance Febrio Kacaribu at a press conference on February 22.  (Photo: ANTARA)

Jakarta (VNA) – Indonesia's 2023 state budget will be prioritised for post-COVID-19 pandemic economic recovery efforts, an official has said.

The 2023 state budget implementation is great due to positive economic growth trend, head of the Fiscal Policy Agency under the Ministry of Finance Febrio Kacaribu said at a press conference on February 22.

According to Kacaribu, the state budget will also be channeled to create employment opportunities and reduce the poverty rate, thereby bringing tangible results to people.

The official said he believes in a bright prospect for economic growth rate in 2023 despite the high risk of a global economic slowdown. However, the government will remain cautious of the dynamics in the global economy which will not be bad as previously forecast by the International Monetary Fund.

He said that the government is still mulling over the amendment of a regulation on withholding foreign exchange export proceeds from the export of natural resources to improve national macroeconomic stability.

Kacaribu stressed that the revision of the regulation will not contract the free foreign exchange policy, as the foreign exchange that will be retained only came from natural resources’ commodity transactions.

The government will prepare incentives, such as a reduction in income tax on export foreign exchange interest rate to 0%, so business players will be willing to keep the foreign exchange for six months./.