Indonesia’s Finance Minister Warns of Economic Status

On Tuesday, Sri Mulyani Indrawati, Indonesia’s Finance Minister, warned the country of the global economy, pointing out threats and uncertainties that persist to affect Indonesia’s stable internal economy.

“Generally, the tension of politics and economics is still seen to lift and will impact on the GEP,” said Indrawati. She expanded on other issues involving changes in the prices of some of the common commodities like coal, all of which bear the potential of altering the landscape of the economy.

These remarks were made when Indrawati was making presentation of the current budgetary statistics to the press. As per the data, Indonesia’s budget deficit was at 0 for the seven months up to July 2013. As to the above mentioned ratios for the predicted period, it amounted to 41% of the gross domestic product (GDP), in other words, 93. 4 trillion rupiah, or $5. 9 billion.

Revenue collected during this period was 1,545. 4 trillion rupiah. This figure is down by 4 per cent when compared with the previous year. to the corresponding period last year, it has declined by 3%. At the same time, the level of government consumption was 1,638. 8 trillion rupiah at end July, up by 12 percent from the year before. 2% year-on-year.

Last month, Indonesia’s Finance Minister Indrawati projected an even greater 2024 budget deficit assuming that it will be 2. 7% of GDP. This is decline from a previous target of 2. 29% of GDP. The projections of the deficit have been a result of increased government expenditure and reduced revenues especially from the mining sector.

It is apparent from Indrawati’s remarks that the global and domestic economy is rather INUS for a number of reasons. Indonesian, policymakers, and other investors ought to consider the possibility that as political and economic tensions rise, more extensive spillovers of disturbances in the international economic system will likely ensue.

The rest of the currencies in Asia including the South Korean won and Indonesian rupiah also have in the recent past gone down due to factors that affect the Region’s economy.

Nonetheless, with these financial susceptibility Indonesia is trying to cope with these conditions while the government pays close attentions to the various economic imputes as well as fine-tune the fiscal instatements therefore adjusting to these volatile conditions.