Kemenku Tetap Blokir Sejumlah Anggaran Tahun 2025 | KONTAN News

Summary

The Ministry of Finance has introduced a budget blocking strategy to mitigate risks and ensure the health of the state budget (APBN) for 2025. This approach, known as automatic adjustment, has been in place since 2021 to address unforeseen circumstances like the COVID-19 pandemic. For 2025, the strategy aims to address global dynamics, high commodity prices, state-owned enterprises' performance, and climate change. The government plans to keep the fiscal deficit within 3% and maintain strict fiscal discipline, including managing debt and primary balance targets.

Takeaways

• 😀 The Ministry of Finance will implement a temporary budget blocking strategy for 2025.
• 😀 This strategy aims to mitigate risks to maintain a healthy State Budget (APBN) amidst global dynamics and commodity price volatility.
• 😀 The fiscal policy head, Febrio Kacaribu, discussed this in a meeting with the Budget Committee of the Indonesian Parliament (DPR) on June 20, 2024.
• 😀 The budget blocking strategy has been applied since 2021, initially implemented to address urgent pandemic-related budget needs.
• 😀 In 2021, the blocking of the budget amounted to IDR 8 trillion, while in 2022 it was IDR 9.71 trillion.
• 😀 For 2023, the government blocked IDR 50.23 trillion from various ministries and institutions.
• 😀 This strategy is a part of broader financial risk mitigation efforts, including collaboration with regional governments on burden sharing.
• 😀 Febrio Kacaribu stated that further discussions will be held in the upcoming draft law on APBN after the submission of the financial note.
• 😀 The government plans to maintain fiscal discipline with a deficit cap of 3% and a debt-to-GDP ratio not exceeding 60%.
• 😀 Additionally, there will be a focus on ensuring a primary surplus to maintain budget balance.

Q & A

What is the purpose of the temporary budget blocking strategy mentioned in the script?

The purpose of the temporary budget blocking strategy is to mitigate risks and ensure the health of the state budget (APBN) in 2025, especially amidst global dynamics and volatility in commodity prices.

Who is responsible for explaining the budget blocking strategy in the script?

The strategy is explained by Febrio Kacaribu, the Head of the Fiscal Policy Agency at the Ministry of Finance.

What specific challenges are expected in the 2025 state budget, as highlighted in the script?

The challenges expected in the 2025 state budget include global dynamics, high volatility in commodity prices, the performance of state-owned enterprises (BUMN), and climate change trends.

Since when has the strategy of budget blocking or automatic adjustment been implemented?

The strategy of budget blocking or automatic adjustment has been implemented since 2021.

How much budget was blocked by the Ministry of Finance in 2021?

In 2021, the Ministry of Finance blocked a budget of IDR 8 trillion for ministries or institutions.

What was the reason for the budget blocking in 2021?

The budget blocking in 2021 was a response to the urgent need for budget allocation due to the COVID-19 pandemic.

How much was the budget blocked for ministries or institutions in 2023?

In 2023, the budget blocked for ministries or institutions amounted to IDR 50.23 trillion.

What other financial mitigation effort is mentioned in the script besides budget blocking?

Another financial mitigation effort mentioned is the burden-sharing initiative between the central government and regional governments.

What fiscal discipline measures will the government implement moving forward?

Moving forward, the government will implement fiscal discipline by maintaining a deficit of no more than 3%, a debt-to-GDP ratio of no more than 60%, and managing a primary balance that aims for a surplus.

What will be discussed further in the draft of the APBN law after the financial note?

The plans related to budget blocking and fiscal management will be further discussed in the draft of the APBN law after the financial note.