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Jakarta Post

Govt, House pass Indonesia’s 2021 state budget: What you need to know

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Thu, October 1, 2020   /  08:47 am
The Jakarta Post Image
Finance Minister Sri Mulyani Indrawati adjusts her mask in a hearing session with the House of Representatives in Jakarta on June 22, 2020.(Antara/Puspa Perwitasari)

The government and the House of Representatives passed the 2021 state budget bill into law on Tuesday, aiming at accelerating economic recovery amid the coronavirus pandemic and pushing for structural reforms to boost competitiveness. The 2021 State Budget Law targeted Indonesia’s economic growth to rebound to 5 percent next year, Finance Minister Sri Mulyani Indrawati said on Tuesday. This will follow an expected economic contraction of 0.6 to 1.7 percent this year, the first since the 1998 Asian financial crisis. “Economic growth in 2021 will be driven by gradual recovery in domestic consumption and we will push government spending to maintain people’s purchasing power amid the new normal,” she said. Controlling the pandemic will be the key factor to ensure growth, Sri Mulyani added. “Investment will grow next year because of the base effect and a...