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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fathan Qorib/ANT
President Joko Widodo. Photo by: RES
On 16 August, the day before Indonesia’s Independence Day, President Joko Widodo announced his Draft State Budget for the 2017 period (2017 Draft State Budget) before a plenary session (rapat paripurna) of the House of Representatives (House). During this session, President Widodo revealed that the state revenue target for the 2017 period had been set at IDR 1,737.6 trillion, a figure that is based upon the 2017 fiscal policy and its supporting strategies.
“Out of the IDR 1,737.6 trillion total, it is predicted that some IDR 1,495.9 trillion will be generated through tax revenue,” President Widodo asserted during a plenary session which was held in the House of Representatives/People's Consultative Assembly Building on Tuesday, 16 August 2016.
President Widodo further revealed that the non-tax state revenue (Penerimaan Negara Bukan Pajak) target for the 2017 period has been set at IDR 240.4 trillion. This is considered to be quite a high figure in light of the global decrease in the prices of mining commodities, such as oil and coal.
The 2017 Draft State Budget has also allocated some IDR 2,070.5 trillion for government spending, a figure which comprises of IDR 1,310.4 trillion for central government spending and IDR 760 trillion which will be channeled into regional governments and village funding. President Widodo expressed his awareness that the government is thus viewed as promoting an expansive monetary policy.
“The various development targets and agendas which I mentioned earlier show that our 2017 fiscal policy is still following an expansive monetary approach, which is being directed towards increased production capacity. The government has subsequently set a budgetary deficit prediction for the 2017 Draft State Budget of around IDR 332.8 trillion, which is equal to 2.41% of gross domestic product,” President Widodo asserted.
Note that the above figure still lies below the permitted maximum budgetary deficit stipulated under the elucidation of Article 12 (3) of Law No. 17 of 2003 on State Finances, which has been set at 3% of GDP, while the maximum level of government debt has been set at 60% of GDP.
President Widodo further explained that generally speaking, the government’s 2017 budgetary policy will focus upon the development and optimization of innovative and creative financing activities, increasing and improving access to financing for micro-, small-, and medium-scale enterprises (UMKM), and increasing and improving access to financing for investment and construction purposes.
Moreover, financing will also be channeled into supporting the program in order to increase access to education and housing for low-income citizens, as well as improving the quality of government investment planning while maintaining the ratio of debt to GDP at a safe and manageable level. Therefore, the government is also intending to increase private-sector participation in various construction and financing programs under the auspices of a government-to-business cooperation scheme.
“I believe that the support and trust of the people will allow the government to work better and more effectively in order to pursue common progress,” President Widodo concluded.
A Well-Planned Strategy
The government also recently began to implement a strategy aimed at minimizing the budgetary deficit by cutting down on the number of budgetary posts at various ministries and government institutions. Commenting on this issue, Darmin Nasution, the Coordinating Minister for Economic Affairs, asserted that the budget cuts in question were being undertaken after a proper assessment of the government’s programs and their various priorities and needs had first been made. Minister Nasution further revealed that any contracts which have been issued in order to implement various programs would not be subject to any budgetary cuts. Instead, cuts will be aimed at lower priority programs.
“If a contract for a program has been agreed upon, then there will be no interference and we will be able to avoid unnecessary conflict later on. Instead, the cuts are being aimed at lower priority programs, particularly ones that have yet to be agreed upon under a written contract,” Minister Nasution asserted.
Meanwhile, the government has already cut some IDR 133.8 trillion from its spending allocation for the 2016 period. These cuts take in IDR 65 trillion from the budgets of various ministries and government institutions, and another IDR 68.8 trillion from regional-government budgets.
(hs/sp)
Marcell Sihombing, Fathan Qorib/ANT
President Joko Widodo. Photo by: RES
On 16 August, the day before Indonesia’s Independence Day, President Joko Widodo announced his Draft State Budget for the 2017 period (2017 Draft State Budget) before a plenary session (rapat paripurna) of the House of Representatives (House). During this session, President Widodo revealed that the state revenue target for the 2017 period had been set at IDR 1,737.6 trillion, a figure that is based upon the 2017 fiscal policy and its supporting strategies.
“Out of the IDR 1,737.6 trillion total, it is predicted that some IDR 1,495.9 trillion will be generated through tax revenue,” President Widodo asserted during a plenary session which was held in the House of Representatives/People's Consultative Assembly Building on Tuesday, 16 August 2016.
President Widodo further revealed that the non-tax state revenue (Penerimaan Negara Bukan Pajak) target for the 2017 period has been set at IDR 240.4 trillion. This is considered to be quite a high figure in light of the global decrease in the prices of mining commodities, such as oil and coal.
The 2017 Draft State Budget has also allocated some IDR 2,070.5 trillion for government spending, a figure which comprises of IDR 1,310.4 trillion for central government spending and IDR 760 trillion which will be channeled into regional governments and village funding. President Widodo expressed his awareness that the government is thus viewed as promoting an expansive monetary policy.
“The various development targets and agendas which I mentioned earlier show that our 2017 fiscal policy is still following an expansive monetary approach, which is being directed towards increased production capacity. The government has subsequently set a budgetary deficit prediction for the 2017 Draft State Budget of around IDR 332.8 trillion, which is equal to 2.41% of gross domestic product,” President Widodo asserted.
Note that the above figure still lies below the permitted maximum budgetary deficit stipulated under the elucidation of Article 12 (3) of Law No. 17 of 2003 on State Finances, which has been set at 3% of GDP, while the maximum level of government debt has been set at 60% of GDP.
President Widodo further explained that generally speaking, the government’s 2017 budgetary policy will focus upon the development and optimization of innovative and creative financing activities, increasing and improving access to financing for micro-, small-, and medium-scale enterprises (UMKM), and increasing and improving access to financing for investment and construction purposes.
Moreover, financing will also be channeled into supporting the program in order to increase access to education and housing for low-income citizens, as well as improving the quality of government investment planning while maintaining the ratio of debt to GDP at a safe and manageable level. Therefore, the government is also intending to increase private-sector participation in various construction and financing programs under the auspices of a government-to-business cooperation scheme.
“I believe that the support and trust of the people will allow the government to work better and more effectively in order to pursue common progress,” President Widodo concluded.
A Well-Planned Strategy
The government also recently began to implement a strategy aimed at minimizing the budgetary deficit by cutting down on the number of budgetary posts at various ministries and government institutions. Commenting on this issue, Darmin Nasution, the Coordinating Minister for Economic Affairs, asserted that the budget cuts in question were being undertaken after a proper assessment of the government’s programs and their various priorities and needs had first been made. Minister Nasution further revealed that any contracts which have been issued in order to implement various programs would not be subject to any budgetary cuts. Instead, cuts will be aimed at lower priority programs.
“If a contract for a program has been agreed upon, then there will be no interference and we will be able to avoid unnecessary conflict later on. Instead, the cuts are being aimed at lower priority programs, particularly ones that have yet to be agreed upon under a written contract,” Minister Nasution asserted.
Meanwhile, the government has already cut some IDR 133.8 trillion from its spending allocation for the 2016 period. These cuts take in IDR 65 trillion from the budgets of various ministries and government institutions, and another IDR 68.8 trillion from regional-government budgets.
(hs/sp)