State Budget Under Pressure

The State Budget was increasingly pressured by the global economy between January and October this year. The budget deficit continues to widen due to a drastic fall in tax revenue growth.

KOMPAS/PRIYOMBODO

A screen shows infographics displayed over video footage of Finance Minister Sri Mulyani Indrawati as she provides information at the 2019 November Performance and Facts press conference at the Finance Ministry in Central Jakarta on Monday (18/11/2019). Indonesia\'s economic stability is still maintained amid the prospect of slowing global economic growth. Indonesia\'s gross domestic product (GDP) in the third quarter grew 5.02 percent and cumulatively increased 5.04 percent in line with the strong growth of household spending and nonprofit institutions serving households.

JAKARTA, KOMPAS – The government has tightened its belt to respond to the condition, balancing budgetary spending against revenue. As a result, government spending has also slowed.

Finance Minister Sri Mulyani Indrawati said in Jakarta on Monday (18/11/2019) that global economic and geopolitical turmoil had offset budgetary performance throughout the year. External pressures include the China-US trade war, weakening global oil prices and negative interest rates. “The risk of global pressures on the domestic economy this year is being monitored closely,” she said.