Jakarta – After skyrocketing throughout 2022, coal prices on the global market have declined this year. However, the Minister of Finance Sri Mulyani is confident that the Indonesian State Budget is still strong despite the decline in income from commodity exports.
“The biggest risk [in 2023] is prices, coal, [crude] oil will definitely not always be above. There will definitely be a correction. The question is how to maintain it,” said the Minister of Finance in the Economic Outlook 2023 event, Tuesday (28/2/2023) .
On the other hand, the government must maintain budget provision for priority programs such as infrastructure spending including national strategic projects, elections, poverty alleviation, and efforts to reduce stunting.
“We will do an exercise, if the price of coal drops, what will we do if there is a shock,” said the Minister of Finance.
Sri Mulyani stated that the decline in commodity prices, among other things, could be offset by an increase in other incomes. For example, from BUMN dividends and non-tax state revenue (PNBP). Particularly for PNBP, he continued, which had doubled. Regional taxes such as motor vehicle taxes and restaurant and hotel taxes rose to three digits.
“This is what we then formulate if revenue is not as high as from commodities, it can be anticipated with other revenues,” said Sri Mulyani.
In addition, the government also hopes that the Law on Harmonization of Tax Regulations can increase state revenues.
Sri Mulyani is optimistic that all of these developments can act as a shock absorber for the impact of falling commodity prices and ensure that the government’s efforts to build infrastructure, hold elections and start building a new national capital can continue.
“Many ministers of finance [of other countries] are actually fighting, if we [Indonesia] can actually reform, improve legislation. Those are all achievements and the DPR has extraordinary support,” he said.
