{"id":34121,"date":"2022-03-22T18:07:00","date_gmt":"2022-03-22T11:07:00","guid":{"rendered":"https:\/\/uns.ac.id\/en\/?p=34121"},"modified":"2022-03-22T18:50:02","modified_gmt":"2022-03-22T11:50:02","slug":"minister-of-finance-scientific-oration-on-the-46th-uns-anniversary-state-budget-to-protect-people-from-pandemic-threats","status":"publish","type":"post","link":"https:\/\/uns.ac.id\/en\/minister-of-finance-scientific-oration-on-the-46th-uns-anniversary-state-budget-to-protect-people-from-pandemic-threats\/","title":{"rendered":"Minister of Finance Scientific Oration on the 46th UNS Anniversary: State Budget to Protect People from Pandemic Threats"},"content":{"rendered":"\n

UNS<\/a> — Universitas Sebelas Maret (UNS) Surakarta held the Open Session of the Academic Senate for the 46th UNS Anniversary Ceremony. On this occasion, the Minister of Finance of the Republic of Indonesia<\/a> (RI), Sri Mulyani Indrawati, S.E., M.Sc., Ph.D., attended the session with an academic oration. In her Oration, Sri Mulyani said that UNS had contributed ideas for the nation\u2019s development and progress. \u201cUniversitas Sebelas Maret has contributed through their thoughts for the development and advancement of Indonesia. For this 46th Anniversary, I hope that Universitas Sebelas Maret will continue their achievements in the national and global scene,\u201d said Sri Mulyani.<\/p>\n\n\n\n

She was also grateful for the appreciation that UNS had awarded. According to her, this is an award to all members of the Ministry of Finance for their hard work and achievements in managing fiscal policy and maintaining the country\u2019s finances towards Indonesia\u2019s goal of creating a just and prosperous society.<\/p>\n\n\n\n

Sri Mulyani also said that healing and recovery would inevitably occur as a consequence of the Covid-19<\/a> pandemic. Two years after the virus has hit the world and infected nearly half a billion people globally, more than 6,000,000 people have died. Of course, this mortality rate is much higher than other pandemics such as Hongkong flu, swine flu, and the ebola virus.<\/p>\n\n\n\n

According to Sri Mulyani, this pandemic was one of the century\u2019s biggest challenges. The Covid-19 pandemic had a devastating impact. The world was not prepared for such a situation with all activities suddenly had to stop, public consumption became hampered, commodity prices fell, even world crude oil prices had reached the lowest price at the US $37 per barrel in April 2020, world stock prices fell instantly, and capital flows leaving various countries. Indonesia also experienced tremendous pressure, with capital outflows reaching Rp. 121.8 trillion in March 2020, export and import activities stalled, and the volume of global trade in 2020 contracted considerably at an 8.2% rate.<\/p>\n\n\n\n

Furthermore, Sri Mulyani explained that all countries faced three major challenges during the pandemic. \u201cWe are facing three major challenges, the war against Covid-19 that threatens public safety and health, the social challenge to protect people who suddenly lose their jobs, economic activities, and the economic challenge; and the third challenge we face is the financial challenge of restoring a deteriorating economy and potentially threatening the stability of the financial sector. In the face of simultaneous, extraordinary, and catastrophic multidimensional challenges, Indonesia under the leadership of President Jokowi and Vice President Ma\u2019aruf Amin has taken steps that are also remarkable,\u201d she explained.<\/p>\n\n\n\n

\"Minister<\/a><\/figure><\/div>\n\n\n\n

The existence of an extraordinary multidimensional crisis needs a multidimensional and extraordinary response. Sri Mulyani states that a very vital and significant instrument in facing the pandemic and this multidimensional challenge is state finance, or the Indonesian State Budget (APBN). Sri Mulyani added that the State Budget is present and give the best attempt to protect the citizen from the threat of the pandemic, safeguard the community from the decline in welfare due to job loss, protect and restore the business sector, especially small and medium-sized businesses, and protect and maintain the stability of the financial system.<\/p>\n\n\n\n

With this background and purpose, the President of the Republic of Indonesia has issued a Perpu (Government Regulation in Lieu of Law) Number 1 of 2020, then ratified into Law Number 2 of 2020. With this regulation ratification, there is space for exceptional fiscal and monetary policy, while the financial systems can become responsive and flexible in complex and precarious challenges.<\/p>\n\n\n\n

Sri Mulyani said that as a measure to handle the pandemic crisis, the State Budget instrument must be flexible but still accountable, responsive but remain just, and maintain long-term sustainability. Furthermore, she said that the Perpu Number 1 of 2020 provides the government flexibility in reallocating and refocusing the budget because the state spending pandemic jumped above 12%, while state revenue declined 16%, tax revenue even declined more deeply, namely 19.6% because the economy stopped.<\/p>\n\n\n\n

Perpu Number 1 of 2020 provides relaxation of the Budget deficit above 3% of the Gross Domestic Product (GDP) for three years. The pandemic, indeed, threatens the stability of the financial system due to declining economic activities, numerous companies unable to pay the debt installments and interest, increasing bad credit rate, panic in global financial markets caused volatility in financial markets, capital outflows, and pressure on the rupiah occurred, the status of financial stability increased from regular normal conditions to alerted-normal.<\/p>\n\n\n\n

Furthermore, Sri Mulyani explained that such a condition was two levels below the crisis level. Perpu Number 1 of 2020 provides an extension of authority to the financial stability committee to establish forward-looking policies. In anticipation of risk, the Financial Services Authority (OJK) allows the financial services industry to perform credit category relaxation or conduct a \u2018regulatory for burdens\u2019 to support the banking sector in performing massive credit restructuration. The Bank of Indonesia (BI) maintains the stability of the rupiah and the economy\u2019s liquidity, and together with the Government, they carry the cost of the crisis.<\/p>\n\n\n\n

The Government has launched a national economic recovery program, a comprehensive program among the ministries and governmental institutions, but centrally coordinated to deal with health and economic crises. In 2020, the PC-PEN program was budgeted at Rp. 695.2 trillion. In 2021 it jumped to Rp. 744.7 trillion. The PC-PEN program targets the health, social protection, and saving the business sector.<\/p>\n\n\n\n

Sri Mulyani mentioned that in the health sector, the budget is allocated for medical devices, personal protective equipment, Covid-19 test equipment, ventilators, vaccines, health intensive care costs, and compensation to the family members of health workers who are passed away in carrying their duties. In the social protection sector, the budget is allocated to strengthen and expand the family\u2019s safety net through the \u2018Keluarga Harapan\u2019 program in the form of staple food assistance, Jabodetabek social assistance, cash social assistance, pre-employment cards, direct cash assistance allocated from village funds, electricity discounts, internet quota subsidies, and wage subsidies to protect the business world, which delivered to create fiscal intensive, reduced corporate income tax, corporate income tax rates, reduced and reduced installments of PPH 25, and accelerated restitution. The Government also provides access to capital to Micro, Small, and Medium Enterprises (MSMEs), cooperatives through KUR\u2019s interest subsidies, productive assistance, state investment, and placement of funds in banking and credit guarantee.<\/p>\n\n\n\n

Sri Mulyani added that the State Budget had worked very hard to become a shock absorber and a counter-cyclical in the face of the shock faced by citizens and the business sector. Budget policies that are flexible, adaptive, and responsive but remain just and accountable provide good results. Furthermore, she explained that the State Budget is a vital instrument for developing and safeguarding Indonesia. \u201cAn important instrument must also be maintained in a balanced and reliable manner; thus, it can provide a continuous solution in facing various development challenges and turmoil and the threat of crises that may occur in the future. State Budget and finance reform is inevitable and necessary,\u201d explained Sri Mulyani.<\/p>\n\n\n\n

According to Sri Mulyani, fiscal reform continued during the pandemic with two crucial legislations have been ratified: the Central and Regional Financial Relations Regulation and the Law on the Harmonization of Tax Regulations in 2021. These two legislations will strengthen the state revenue policy and improve the quality of transfer expenditure to the regions, strengthening decentralization and regional autonomy. \u201cThis is to strengthen decentralization and regional autonomy. Budget reform also includes improving the quality and efficiency of central government spending, financing, treasury management, and the country\u2019s wealth,\u201d Sri Mulyani explained.<\/p>\n\n\n\n

At the end of her Oration, Sri Mulyani conveyed that there will always be a challenge at any given time, and every challenge has an answer. \u201cThere will always be a challenge at a specific time. Every challenge has an answer, and there will be a figure behind the answer each time. There will still be storms and challenges that we will face in the future. We Indonesian must always be ready. UNS is must continue its role as a Candradimuka crater in preparing those who will fight and struggle to maintain and build Indonesia for better, fairer, more advanced, and dignified.<\/p>\n\n\n\n

Sri Mulyani always invites attendees to never-give-up in loving Indonesia. Humas UNS<\/strong><\/p>\n\n\n\n

Reporter: Zalfaa Azalia Pursita
Editor: Dwi Hastuti<\/p>\n","protected":false},"excerpt":{"rendered":"

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