Gov’t Announces Five Key Fiscal Policy Priorities for 2022

INDUSTRY.co.id - Minister of Finance Sri Mulyani Indrawati Thursday (20/05) delivered the Government’s Introduction and Statement on the Macroeconomic Framework and Principles of Fiscal Policy (KEM-PPKF) in the fiscal year of 2022 before the 18^th House of Representatives Plenary Meeting in Jakarta.

“The 2020 fiscal policy focuses on Economic Recovery and Structural Reform that goes hand in hand with the Government’s 2022 working plan by strengthening socio-economic recovery as the foundation to optimally support the implementation of structural reforms,” Sri Mulyani said.

There are five main priorities of the 2020 fiscal policy.  They are as follows:

First, the fiscal policy aims to continue measures to strengthen economic recovery, while prioritizing health sector, especially COVID-19 handling as the key of national economic recovery.

Second, the fiscal policy aims to maintain sustainability of social protection programs in order to strengthen the foundation of social welfare, prevent rise in poverty and vulnerability of those affected by COVID-19, and empower MSMEs and businesses.

Third, the fiscal policy aims to support productivity and human resources quality improvement through improving quality of education, strengthening integrated and reliable health systems, and strengthening social protection.

Fourth, the fiscal policy aims to optimize state revenues, including taxation, spending better programs, and financing innovation in order to consolidate the fair and sustainable state budget policy.

Fifth, all these four aspects above must be followed by the strengthening institutions and regulation simplification through bureaucratic reform and consistent implementation of Job Creation Law.

For the record, the optimization of the 2022 fiscal policy implementation is also a key priority as stated in Law No. 2 of 2020 on State Financial Policy and Financial System Stability for Handling Covid-19 Pandemic.

With the acceleration of economic recovery, structural reform measures, and fiscal reform, the 2020 fiscal policy is expected to be more effective, prudent, and sustainable.

“Amid recovery condition, we have to remain optimistic and keep up the spirit. We also have to be committed to providing favorable and effective fiscal management in order to support sustainable economic growth,” Sri Mulyani remarked.