Jakarta: Minister of Finance Sri Mulyani Indrawati has stated that the State Budget (APBN) performance until the end of April 2019 is still quite safe.
This was conveyed during the May 2019 edition of the APBN KiTa (State Budget Performance and Fact) Press Conference at the Djuanda I Building Hall, Ministry of Finance on Thursday.
The former World Bank managing director stated, amid the prospect of weakening global economic growth, the counter cyclical policy taken by the Government in fiscal management was able to maintain the momentum of Indonesia's economic growth in the first quarter of 2019 by 5.07 percent. This achievement gives a positive signal to the development of the national economy going forward. However, various risks and challenges still need to be aware of.
"So, our economic situation that experienced some external pressures as well as indications of internal pressures, the State Budget has an important function which is reducing the pressure so that it performs its counter cyclical function. Therefore, we can still have economic growth above 5%, which is 5.07 higher than the growth in the first quarter of the last 3 years," the Ministry of Finance quoted the influential economist as saying.
The world economic slowdown in 2019 which was influenced by various global issues, such as the US-China trade war and the weakening of world commodity prices, those also affected the performance of Indonesia's exports and imports in early 2019.
Bank Indonesia (BI) decided to hold its 7-Day Reverse Repo Rate at 6.00 percent after a Board of Governors meeting on May 15-May 16. The central bank also decided to maintain the Deposit Facility (DF) and Lending Facility (LF) rates at 5.25 percent and 6.75 percent respectively.
According to the central bank, the decision is consistent with efforts to maintain the external stability of Indonesia’s national economy amidst the re-emergence of global financial market uncertainty. Moving forward, BI will remain vigilant of global financial market dynamics and external stability with due consideration to the space available for accommodative monetary policy in line with low inflation and the need to stimulate domestic economic growth.