Sri Mulyani Indrawati, Indonesia’s Finance Minister, is being reported by local newswires, including Tempo, that the country’s state budget (APBN) is resistant to shocks as it recorded a surplus of IDR 107.4-trillion as of August 2022, or 0.58-percent of the Gross Domestic Product (GDP.)
“With this surplus, much lower debt issuance, and a lower deficit, our APBN strategy is very matched for the current challenges stemming from the high cost of funds, shocks in the financial sector, the trend of rising interest rates, and the strengthening of the US dollar,” said Sri in Jakarta on Monday, September 26, 2022.
The budget surplus has been recorded for eight consecutive months. In July, the surplus amounted to IDR 106.1-trillion or 0.57-percent of the GDP. In August 2022, the state budget turned positive from the August 2021 record which saw a deficit of IDR 383.2-trillion or 2.32-percent of GDP.
The budget surplus in August 2022 was attributable to state revenues reaching up to IDR 1,764.4-trillion with state expenditures only recorded at IDR 1,657-trillion. The state revenue grew by 49.8-percent on an annual basis and state spending rose by 6.2-percent Year-on-Year (YoY.)
The Finance Minister claimed that the government had managed to keep the state’s finances in surplus until last month. The projection at the end of the year will still be a deficit. The state treasurer believed that the state budget deficit could be suppressed from the current outlook of 3.92-percent.