JAKARTA: Indonesian President Joko Widodo on Tuesday (Aug 16) tabled a 3,041.7 trillion rupiah (US$206 billion) budget for 2023, while reminding the nation to remain cautious amid global uncertainties.
He said in parliament: “In the future, we must continue to maintain our prudence and vigilance.”
“The risk from global economic turbulence remains high,” he added, referring to how the Russia-Ukraine war and geopolitical tensions have resulted in supply chain disruptions.
Mr Widodo also predicted that next year’s economic growth will be around 5.3 per cent since the country has managed to weather the COVID-19 pandemic.
Indonesia’s economic growth was up 5.44 per cent year-on-year in the second quarter. It was the fastest growth rate in a year.
The 2023 budget is less than this year’s budget, which stands at 3,106 trillion rupiah. This year’s budget has been adjusted upwards from the original 2,714 trillion rupiah figure.
As of last month, the government forecasted this year’s budget deficit to be at 3.92 per cent of GDP.
Mr Widodo said that next year’s budget deficit would be a maximum of 3 per cent in order for it to be financially sustainable for Indonesia. He said that the aim is around 2.8 per cent.
The 2023 budget would comprise 2,230 trillion rupiah for central government expenditure and 811.7 trillion rupiah for regional government expenditure.