JAKARTA: Indonesian President Joko Widodo tabled a budget of 3,041.7 trillion rupees ($206 billion) for 2023 on Tuesday (August 16), while reminding the nation to remain cautious amid global uncertainties.
He told parliament: “Going forward, we must continue to maintain our caution and vigilance.”
“The risk of global economic turbulence remains high,” he added, referring to how the Russia-Ukraine war and geopolitical tensions have led to supply chain disruptions.
Widodo also predicted that next year’s economic growth will be around 5.3 percent as the country successfully overcome the COVID-19 pandemic.
Indonesia’s economic growth increased 5.44% year-on-year in the second quarter. It was the fastest growth rate in a year.
The 2023 budget is lower than this year’s budget which stands at Rs 3,106 trillion. This year’s budget has been adjusted upwards from the original figure of Rs 2,714 trillion.
Last month, the government projected that the budget deficit this year would be 3.92% of GDP.
Widodo said next year’s budget deficit would be a maximum of 3% to make it financially sustainable for Indonesia. He said the target was about 2.8%.
The 2023 budget would include Rs 2.230 trillion for central government spending and Rs 811.7 trillion for regional government spending.