Indonesia’s fiscal performance in 2022 is better than expected

International Business News  –  Indonesia’s Finance Minister Sri Mulyani said at the State Budget (APBN) meeting on August 11 that the state finances in 2022 will run better than in 2021.

Specifically, Indonesia’s fiscal debt and budget deficit are expected to be less than 4% of gross domestic product (GDP) between now and the end of the year.

Sri Mulyani hopes that Indonesia’s national fiscal deficit will remain low at about 3.9% of GDP, compared with a previous forecast of 4.5% of GDP.

Indonesian government debt fell by 54.1%, from about $33.1 billion in 2021 to about $15.3 billion in July 2022. This positive result comes from the sharp increase in the state budget that has been driven by rising commodity prices in recent years. The state budget is in surplus again until July 2022.

Sri Mulyani stressed that Indonesia’s national financial situation is generally good. Loan borrowing decreased by 169.7%. This means that the state budget is showing positive signs of recovery and is a good condition for Indonesia’s economy to keep growing in the coming quarters.