2022 State Budget: Fiscal Policy and Structural Reform
Strengthened Synergy Between Monetary and Fiscal Policy
Background
Principles
1. The increase in the spread of Covid-19 including the delta
variant requires large financing, among others, for handling
health and humanity as a result of the COVID-19 pandemic
2. The government and Bank Indonesia (BI) are coordinating
solidly, in which Bl actively participates in the purchase of
SBN in the primary market, including the contribution to
health and humanitarian financing.
3. The agreement between the Government and Bl is stated in
the Joint Decree of the Minister of Finance and the
Governor of Bank Indonesia concerning the Scheme and
Coordination Mechanism between the Government and
Bank Indonesia in the Context of Financing for Health and
Humanitarian Management to Handle the Impact of the
Corona Virus Disease 2019 (COVID-19) Pandemic through
Purchases in the Market Initial by Bank Indonesia on
Government Securities and/or Government Sukuk (or
referred to as SKB III)
1. Maintaining fiscal space and fiscal sustainability
in the medium term
2. Reduce the APBN deficit gradually below 3% in
accordance with the provisions of the legislation
3. Maintaining the exchange rate stability, interest
rate and inflation under control
4. Prioritizing credibility and integrity of fiscal and
monetary management
5. Encouraging sustainable economic growth
Maintaining financial sustainability of the
Government and Bank Indonesia
6.
Source: Ministry of Finance
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