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Indonesia’s 2021 state budget draft: What we know so far
The government aims to use the state budget to accelerate economic recovery after the pandemic and to push for structural reform in a bid to boost productivity, innovation and economic competitiveness.
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President Joko "Jokowi" Widodo delivers his annual state budget speech before the People's Consultative Assembly in Jakarta on Friday. (Antara/Akbar Nugroho Gumay)
P
resident Joko “Jokowi” Widodo has revealed Indonesia’s 2021 state budget proposal after delivering his state of the nation address before the People’s Consultative Assembly on Friday.
The government aims to use the state budget to accelerate the economic recovery after the pandemic and to push for structural reform in a bid to boost productivity, innovation and economic competitiveness.
“We must turn this crisis into an opportunity to make big leaps,” Jokowi said.
“Twenty-five years from now, at the centenary of the Republic of Indonesia, we must achieve great progress and make Indonesia a developed country,” stressed the President, who said the current health crisis was similar to a computer crash that required restarting and rebooting.
The COVID-19 pandemic has battered Indonesia’s economy, pushing the country’s economy into a contraction in the second quarter, the first since 1999, as the outbreak disrupted business activity and hurt consumer spending.
Next year, Indonesia looks to raise Rp 1.78 quadrillion (US$120.42 billion) in state income to fund bigger spending on infrastructure and health care, among other things, as the government proposes Rp 2.74 quadrillion in expenditure to fuel the virus-battered economy.
