Keseimbangan Primer - APBN | Susi Novalina

Summary

In this video, Novalina explains the concept of the primary balance in Indonesia’s National Budget (APBN). She discusses how the primary balance is calculated by subtracting debt interest payments from the state’s total income and expenditure. The video highlights Indonesia’s fiscal policy and trends from 2017 to 2019, showing a decrease in the budget deficit and improvement in fiscal health. Viewers learn about the importance of managing a budget deficit, the methods of financing it, and how a positive primary balance means part of the debt interest can be paid from state income. The video encourages ongoing learning about fiscal policies.

Takeaways

• 😀 **Primary Balance (Keseimbangan Primer)** is the difference between state revenue and expenditure, excluding debt interest payments.
• 😀 **Budget Deficit** occurs when state expenditures exceed revenue, which is typically covered by borrowing.
• 😀 A **positive primary balance** means there’s enough revenue to cover debt interest payments.
• 😀 A **negative primary balance** indicates the need for additional financing, such as borrowing, to cover debt interest payments.
• 😀 The **fiscal policy** used in Indonesia is expansionary, aiming to increase revenue and reduce unemployment even during a budget deficit.
• 😀 From 2017 to 2019, Indonesia's budget deficit increased but the **primary balance** showed improvement, indicating fiscal progress.
• 😀 A budget **deficit** is considered manageable as long as it remains under 3% of GDP.
• 😀 The **debt interest payments** are excluded from the primary balance calculation, giving a clearer picture of the state’s fiscal health.
• 😀 The **APBN (State Budget)** has a principle of deficit or surplus, which can fluctuate but must be carefully managed.
• 😀 A **reducing deficit** percentage (from 2.4% to 1.84% of GDP) suggests an improvement in the fiscal health of Indonesia's economy.
• 😀 The **calculation method** for primary balance involves subtracting total expenditures and debt interest payments from state revenue.

Q & A

What is Keseimbangan Primer (Primary Balance) in the context of Indonesia's national budget?

Keseimbangan Primer refers to the difference between national revenue and government expenditure, excluding interest payments on debt. If national income is greater than government spending (excluding debt interest), the balance is positive. If it's less, the balance is negative.

How is the primary balance calculated?

The primary balance is calculated by subtracting government spending (excluding debt interest) from national revenue. If the result is positive, it indicates a surplus; if negative, it indicates a deficit.

What does a positive primary balance mean for Indonesia's budget?

A positive primary balance means that the government's revenue exceeds its non-debt related expenditures, leaving surplus funds that can be used to pay interest on debt.

What does a negative primary balance indicate?

A negative primary balance indicates that government revenue is insufficient to cover non-debt expenditures, and the country must borrow funds to cover the debt interest payments.

Why is the fiscal expansion policy important in the context of Indonesia's budget?

The fiscal expansion policy is used to stimulate economic growth by increasing national income and reducing unemployment, even if it results in a budget deficit. This approach involves increasing government spending.

What was the trend in Indonesia's budget deficit from 2017 to 2019?

From 2017 to 2019, Indonesia's budget deficit remained, but the deficit decreased each year, indicating an improvement in fiscal health.

How does the government's budget deficit affect the country's financing?

When a budget deficit occurs, the government must finance the gap, either through domestic or foreign borrowing. This borrowing helps cover the shortfall in the budget.

What is the role of debt interest payments in the primary balance calculation?

Debt interest payments are excluded from the calculation of the primary balance. They are accounted for separately, as the primary balance focuses only on revenue and non-debt related expenditures.

What is the maximum acceptable budget deficit as a percentage of GDP according to the video?

The maximum acceptable budget deficit is 3% of GDP. If the deficit remains below this threshold, it is considered manageable and within acceptable fiscal policy limits.

What does the improvement in the primary balance over the years indicate about Indonesia's fiscal health?

The improvement in the primary balance, with a decrease in the deficit each year, indicates that Indonesia's fiscal health is improving, with more efficient management of national revenue and expenditures.