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The Vice Minister of Finance Conveyed Indonesia's Developments during the Pandemic Period at the ASEAN Finance Ministers Forum

Jakarta, 02/10/2020 Ministry of Finance - Vice Minister of Finance (Wamenkeu) Suahasil Nazara reported on Indonesia's development during the Covid-19 pandemic at the ASEAN development session at The Business Council (ASEAN-BAC, EU-ABC, US-ABC) - ASEAN Finance Ministers 'Meeting and Central Bank Governors' Meeting virtually on Friday, (02/10).

"We are in a health situation that does not yet have Covid-19 vaccines and medicines yet. The economic impact for Indonesia's economic growth in Q2 has contracted by 5.3%. In Q3 growth was still in the negative zone despite improvements," he explained.

He continued, the government wants to improve the economy by intervening in health spending and support for MSMEs, business support (corporations), and social protection. Therefore, the State Budget (APBN) expenditure allocation needs to be adaptive and flexible so that the government will widen the 2020 deficit to 6.3%. But next year it will be gradually reduced to 5.7%.

"This year we have a deficit of 6.3%. Next year we want to control it at 5.7%. We hope that the economic recovery will continue. We are aware that the recovery will take a long time. Fiscal must be adaptive and flexible enough for the economy," he explained. 

 

Regarding the education matter, he said that currently school children in Indonesia go virtual, school from home. He invited ASEAN countries and partners to jointly discuss connectivity issues and how to educate children virtually in the future.

"The government does not only provide connectivity, but also how to teach them in the future. Maybe we can bring it to discussion here further in the future," he said.

In closing, he assured that Indonesia will not stop reforming infrastructure development, as well as the financial sector. The Vice Minister of Finance stated that post-crisis Indonesia wanted better reforms and wanted to continue regional cooperation, multilateral and open to discussions.

"When we come out of the pandemic era, we must reformed and be better. We also continue regional cooperation, open for discussions with MDB (Multilateral Development Bank) and ASEAN neighboring countries," he concluded. (nr/ds)