Indonesia’s budget deficit and debt issuance closed well below targets in 2021, paving the way for an upcomi ng fiscal consolidation as the economy rides out the COVID-19 pandemic.
Indonesian Finance Minister Sri Mulyani Indrawati (Photo: Jakarta Post)
Hanoi (VNA) – Indonesia’s budget deficit and debt issuance closed well below targets in 2021, paving the way for anupcoming fiscal consolidation as the economy rides out the COVID-19pandemic.
Indonesian Finance Minister Sri Mulyani Indrawati said on January 3 thatthe 2021 budget deficit was at 783.7 trillion rupiah (54.92 billion USD), or4.65 percent of the gross domestic product (GDP).
Debt issuance closed at 867.4 trillion rupiah, or86.3 percent of the 2021 target. The debt is 30 percent lower than in 2020 whenissuance jumped to fund COVID-19 relief programmes.
These bring the government closer to reinstating abudget deficit cap of 3 percent of the GDP by 2023 as required by prevailingregulations.
The minister attributed the increase in Staterevenue to Indonesia’s economic recovery, which translated to higher income taxrevenue from employees and corporations, and higher value-added tax (VAT)revenue from consumed and imported goods and services.
In 2022, the government will spend more ondeveloping the upcoming new capital city in East Kalimantan and preparing forthe 2024 general elections. It will also allocate a PEN budget for thethird year in a row, but at 414 trillion rupiah, which is 44 percentsmaller than last year.
♛ The Finance Ministry plans to focus on executingthe second tax amnesty, which was introduced under the Harmonized Tax Lawpassed last year./.
Indonesia will commence administering the third dose or booster shot on January 12, 2022, according to Airlangga Hartarto, chairman of the COVID-19 Handling and National Economic Recovery Committee (KCP-PEN).
Indonesia's Ministry of Energy and Mineral Resources has banned coal export from January 1-31 on all exporters holding IUP (Mining Business Licence), IUPK Production (Operation Special Mining Business Licence) and PKP2B (Concession Agreement), informed the Vietnam Trade Office in Indonesia.
Indonesian President Joko Widodo has agreed to allocate 14.1 trillion rupiah (over 985 million USD) for four new schemes within the framework of the 2022 National Economic Recovery Programme.
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
In the latest Indonesia-US trade agreement in July, the US administration agreed to reduce the reciprocal tariff, which was initially set at 32% by US President Donald Trump last April, to 19%.
Indonesian Finance Minister Sri Mulyani Indrawati (Photo: Jakarta Post) 
