Indonesia Finance Ministry predict deficit of state budget this year will be worse due to Covid-19 outbreaks. During meeting with president Joko Widodo, she told that the ministry indicate that the deficit is in the range of 2.2% to 2.5% of GDP
The State Budget (APBN) 2020 is estimated to have a wider deficit of 2.5%. Some pressure requires Indonesia to issue fiscal stimulus. Among them is the spread of the corona virus (COVID-19).
“At present, we indicate that the deficit is in the range of 2.2% to 2.5%,” Finance Minister Sri Mulyani said after a meeting at the Presidential Palace, Monday (9/3).
The spread of COVID-19 is pressing the economy both in Indonesia and outside Indonesia. Economic pressures outside Indonesia also affect the Indonesian economy.
Sri admitted that the conditions due to COVID-19 were very dynamic. Even so the government continues to design fiscal policies that minimize the economic impact of COVID-19.
At the moment, government has designed a number of stimulus. Among others, the stimulus for the tourism sector, both the hotel restaurant, to the manufacturing sector.
In addition, Sri also see another suffering from revenue side. Because the price of commodities such as petroleum also showed turmoil in 2020. World oil prices have decreased in the last couple of months. Even so Sri said that was an early indication of the condition of the past two months.
“Our revenues from the oil and gas side and other taxes will surely also come under pressure if the commodity prices fall and economic activity weakens,” Sri explained.