State spending supports accelerating green economic transition

JAKARTA (Andara) – Indonesia’s Finance Minister Sri Mulyani Indravati said that state spending in the 2024 State Budget (APBN) was used to accelerate the green economy.

„State expenditure is aimed at completing priority infrastructure by 2024 to accelerate green economic transition, support bureaucratic and state machinery reforms,” ​​Shri Mulyani said while handing over the Budget Implementation List (DIPA) and transferring the allocation book for FY 2024. Wednesday in Jakarta.

He explained that state spending in the 2024 state budget reached Rp3,325.1 trillion, or 8.6 percent growth compared to the 2023 state budget.

APBN is making great efforts to fulfill all national development priority programs including vulnerable groups, economic recovery, promoting transformation, development of all corners of the region and enhancing safety and security.

„This effort is done while maintaining the APBN as a tool to maintain health, stability and credibility. In this way, the APBN fiscal policy will continue to be effective in sustaining the economy and protecting the Indonesian people,” he affirmed.

The 2024 state budget has been prepared with an assumption of optimistic macro indicators, but is wary of rapidly changing dynamics.

The basic macro assumptions of the 2024 APBN include economic growth of 5.2 percent, controlled inflation of 2.8 percent, exchange rate of Rp15 thousand to one US dollar, 10-year government bond (SBN) interest rate of 6.7 percent, ICP of 82 US. dollars per barrel, as well as lifting 635 thousand barrels of oil per day and lifting 1.033 million barrels of oil equivalent gas per day.

„Assumptions of economic indicators in 2024 will, of course, still be affected by developments in the global economy. So, in maintaining the economy, we must also maintain the health of the APBN,” he said.

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In managing the state budget, the minister stressed the need for automatic adjustment in the face of ongoing uncertainty through the quality, coordination and coherence of expenditure of the state budget and regional budget (APBD) and budget prioritization.

Earlier, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, assessed that the state budget has prioritized projects to tackle climate change and promote climate-friendly measures.

To ensure this, the government is implementing a climate budget indexing mechanism at national and regional levels that can track climate change budget allocations and data on activities and outcomes.

Indonesia increased its Nationally Determined Contribution (NDC) emissions reduction target commitment from 29 percent to 31.89 percent through its own efforts and from 41 percent to 43.20 percent with international assistance by 2030.

The updated NDC is aligned with a long-term low-carbon and climate resilience strategy with a vision to achieve net zero emissions by 2050 and 2060.

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Translated by: Martha Herlinavathy Simanjuntak, Cindy Frishanthi OC
Author: Rahmat Nasushan
Copyright © ANTARA 2023

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