Indonesian President Joko Widodo, said that the financing of the State Revenue and Expenditure Budget of 2019 State Budget will be carried out accountably. 17 of 2003 concerning State Finance. President Jokowi in a financial memorandum address at the General Assembly of the Indonesian People's Consultative Assembly, in Jakarta on Thursday (August 16) stated that debt management was also carried out more carefully to reduce risks and costs. The government will also implement expansionary fiscal policies and set a budget deficit target of 1.84 percent in 2019.
"Debt management is more careful to reduce risks and costs, and direct its use more productively for development programs in education, health, infrastructure, social protection and regional development. In 2019, the Government continues to take a measured expansionary fiscal policy, in order to encourage a sustainable and equitable economy for all Indonesians. Expansive fiscal policy is proportionately carried out carefully to maintain future fiscal sustainability. This is indicated by the smaller State Budget deficit from 2.59 percent of GDP in 2015 to around 2.12 percent in 2018 and in 2019 it will be reduced to 1.84 percent," the President said.
Furthermore, President Jokowi explained, the improvement of fiscal policy was also indicated by the primary balance deficit which in 2015 reached 142.5 trillion rupiah, down to only 64.8 t trillion rupiah in 2018, and continued to be directed even further towards deficit 21, 7 trillion rupiah at 2 019. The President hopes, through the fiscal policy direction, Indonesia will be able to achieve a balanced primary balance or surplus in the near future. In addition to a reduction in the budget deficit, to control additional debt, the Government also reduction of budget financing in 2019 by 5.4 percent. This control measure is consistent with that carried out in 2018, which also reduces financing by around 14.3 percent. With a smaller State Budget deficit and smaller primary balance deficit , with a realistic increase in income, with increasingly quality and on target shopping, as well as prudent and productive financing, the President also hoped the state budget would be healthier, fairer and more independent. (VOI/Rezha/AHM)