Jakarta, Thekabarnews.com—The Indonesian government has claimed again that its finances are robust. In addition, it says it has a large financial cushion to deal with any shocks that may come its way. This is true, even though the international economy is still fragile.

The finance minister, Purbaya Yudhi Sadewa, indicated that the country’s finances are still stable. This is because it has a huge budget surplus (SAL) reserve.

The minister, Purbaya, claimed that the SAL is now worth roughly Rp420 trillion. This is a lot of money to keep the state’s budget safe.

He pointed out the potential use of the reserve in emergencies. Especially, such a scenario could happen if the state budget (APBN) is under additional stress because the world economy is not solid.

“The SAL is a buffer we can use if things grow worse,” Purbaya said. He made it apparent how crucial it is to be financially ready.

The Indonesian government does not plan to use the SAL right away to fulfill higher energy subsidy needs, although these reserves are available. Instead, officials think the best way to handle money issues is to maximize their budgets.

Purbaya has begun to slowly distribute less money to various government departments and agencies. If the government cuts back on spending that is non-essential, it can keep its budget balanced without using reserve monies.

“We are slowly decreasing spending by ministers and institutions that are not considered priorities,” Purbaya said, as quoted in Kontan, Wednesday, April 1, in Jakarta.

This way of doing things shows that the government is careful with money. It also wants things to stay the same throughout time. The government limits reserve fund use to ensure enough resources for unexpected situations.

Indonesian economists say the strategy is beneficial, especially given we’re not very knowledgeable about the globe now. For example, we do not know how energy prices will change, how tensions between countries will alter, and how monetary policies will change.

Many individuals believe that having a robust fiscal buffer is very vital for maintaining investors’ confidence and the economy’s growth.

The government wants to be efficient; thus, it takes controlling the budget seriously. The government seeks to transform long-term spending habits rather than opting for quick solutions.

Due to the uncertainty prevailing globally, people will closely monitor Indonesia’s fiscal strategy. But it looks like the government is determined to mend things while keeping the economy stable.

They can do this work because they have saved up a lot of money and are careful with it. This approach has to function for the next few months. This is because the needs of the domestic budget are getting bigger and outside pressures are changing.

Stay connected via Google News