MINISTRY OF FINANCE

REPUBLIC OF INDONESIA

RECENT
MACROECONOMIC
AND FISCAL UPDATE
MINISTRY OF FINANCE
May 2023
MINISTRY OF FINANCE
REPUBLIC OF INDONESIA

The Team
Investor Relation Unit

Abdurohman
Director for Center of Macroeconomic Policy

Rahadian Zulfadin Eko N Saputro

Senior Analyst Senior Analyst

Putri Rizki Yulianti

Analyst

Andi Yoga Trihartanto

Staff
MINISTRY OF FINANCE Disclaimer
REPUBLIC OF INDONESIA

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MINISTRY OF FINANCE
REPUBLIC OF INDONESIA

01 GLOBAL UPDATE & RISKS

 INDONESIA’S FISCAL POLICY IS PRUDENTLY DEVISED AND WELL-EXECUTED
During the pandemic, the deficit was substantially widened, debt ratio utang increased, yet fiscal position swiftly improved

Fiscal Deficit Before and After the Pandemic Debt Ratio Before and After the Pandemic
(% GDP) (% GDP) Delta of Debt
1.0 during the
0.1 140.0 133.5 pandemic
2019 – 2022
-1.0 (% GDP)
-1.8 121.7
-2.4 Indonesia 120.0 12.9
-2.6 US
-3.0
107.4
-4.3 -4.7 100.0
-5.3 Malaysia
-5.0 -4.9 88.5
-5.3 -5.5 Thailand 8.1
-5.5 US 83.1
-6.4 80.0
India
-6.1 70.1 77.1 16.7
-7.0
-7.5 China 70.4
China 66.3 9.2
67.7 60.5
60.0
-9.0 56.7 19.5
55.6 Malaysia 49.4
-9.7 -9.6 India
41.9 9.4
-11.0
40.0
Thailand 39.6
39.4 40.7
30.1
Indonesia
-13.0 -12.9 20.0

-14.0
-15.0 0.0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Source: IMF Database & MoF, processed 5
 INDONESIA’S FISCAL POLICY EFFECTIVELY SPURS ECONOMIC GROWTH,
INCLUDING IN THE TIME OF PANDEMIC
Among the G20 and ASEAN countries, the increase in GDP for Indonesia and Vietnam is greater than the increase in its debt

Changes in GDP & Government Debt in G20 & ASEAN countries, 2018 – 2022 (Billion USD) △ GDP to △ Debt
(2018 – 2022)
Indonesia India Malaysia Philippines
1000 932.4 80 120
300 276.1 900 69.5 103.6
70
800 100
250
206.5 683.5 60 Vietnam 5.61
700
48.9 80
200 600 50
500
57.4
150 40 60
400 Indonesia 1.34
30
100 300 40
20
200
20
50
100 10 India 0.73
0 0 0 0

Δ Nom. GDP Δ Govt Debt Δ Nom. GDP Δ Govt Debt Δ Nom. GDP Δ Govt Debt Δ Nom. GDP Δ Govt Debt
Malaysia 0.70
Vietnam US Thailand China
300 100 7000
10000
8,925.8
90
86.1 6,114.6 Tiongkok 0.70
9000
250 6000
8000 80
200 7000 70 5000
4,258.2
6000
4,931.4
60
4000
Filipina 0.55
150 5000 50
102.0 4000 40 29.6 3000
100
3000 30 2000 AS 0.55
2000 20
50
18.2 10 1000
1000
0 0 0 0 Thailand 0.34
Δ Nom. GDP Δ Govt Debt Δ Nom. GDP Δ Govt Debt Δ Nom. GDP Δ Govt Debt Δ Nom. GDP Δ Govt Debt

Source: IMF Database & MoF, processed 6

 HOWEVER, POST-PANDEMIC ERA PRESENTS HARDER CHALLENGES

GEOPOLITICAL TENSION CLIMATE CHANGE

Current main source of uncertainties that is likely to escalate in medium- Sources of threat to health, safety, economy & welfare vs. Shift towards a
long term. greener economy.

VS
Electric Energy Green
Extreme weather vehicle Transition industry
Natural disasters
Primary sector disruption
Fragmentation, Deglobalization, War
DIGITALIZATION
• Supply chain disruption • Decreased confidence Digital technology is an important enabler, but comes with
• Persistently high inflation • Declined Investment disruptive risks
• Poverty & unemployment • Sluggish Growth

Geopolitical competition and the shift of global power

De-dollarization Economic competition in developed
Trade war
Re-shoring Trend countries in climate change PANDEMIC
Movement of going mitigation can add to the complexity, Its occurrence gets more
Friend-shoring AIs Chip war Mis-& Disinformation Future of Work
away from USD in namely. US Inflation Reduction Act
Decoupling international (IRA) dan EU Carbon Border
frequent and causes a deep
Chip War transactions. multidimensional crisis.
Adjustment Mechanism (CBAM).

7
 GLOBAL MANUFACTURING ACTIVITY REMAINS CONTRACTED SINCE SEPTEMBER 2022
In the US Manufacturing PMI slips back to contractionary zone, while in Europe it has fallen into deeper contraction

PMI MANUFACTURE AS OF MAY 2023

Advanced Countries Asian Countries

65  ≥5050
Ekspansi
Expansion Global
Global AS
USA Eropa
Europe Tiongkok
China Jepang
Japan
Expansion ≥ 50 India Indonesia Malaysia Vietnam
65.0
60

60.0
58.7
55
50.9 55.0
50.6
50 49.6
48.4 50.0 50.3
47.8
45 44.8 45.0 45.3

40 40.0
Apr-22

Apr-23
Oct-22
Aug-22

Sep-22
May-22

May-23
Jul-22

Dec-22
Nov-22
Feb-22

Mar-22

Feb-23

Mar-23
Jan-22

Jun-22

Jan-23

Source: Bloomberg, IHS Markit

Expansion – Acceleration Expansion Slowing Contraction

Distribution of 62%
24%
Manufacturing PMI for
May 2023 among G20
and ASEAN-6 countries 14%
(excluding Saudi Arabia and
India, Philippines, Mexico, Thailand, Indonesia US, Canada, Brazil. Europe, Germany, French, Italia,
Argentina) Russia, Japan, China UK, South Korea, Malaysia, Vietnam, Singapore,
South Africa
 GLOBAL ECONOMIC RECOVERY STILL FACES CHALLENGES
Global Economic Growth IMF's Projection of Global Trade Inflation Projections
Projections by the IMF, % yoy Volume Growth, % yoy by the IMF, % yoy
WEO Okt '22 WEO Jan '23 WEO Apr '23 Global

10.6 Advanced Economies

Emerging Market and Middle-Income

Economies
5.1

6.3 3.5 9.8

2.4 8.7 8.6
1.0
3.4 3.2

3.0
3.1
2.8

7.0
2.9

2.8
2.7

7.3 6.5

4.9
4.7
-2.8
2.6
-7.8

2019 2020 2021 2022 2023f 2024f 2019 2020 2021 2022 2023F 2024F 2019 2020 2021 2022 2023F 2024F

Downside risks  Escalation of war in Ukraine  Escalated war in Ukraine  Persistently high inflation rate
remain dominant  Debt distress  Geoeconomic fragmentation  Interest rates higher for a longer duration

Sources: WEO IMF October 2022, January and April 2023, processed 9
 GROWTH OUTTURN FOR Q1-2023 TEND TO BE WEAK IN MANY COUNTRIES
Economic growth are still below their pre-pandemic rate
US challenges: aggressive monetary tightening, higher Germany contracted in Q1-2023 because of persistently Apart from high inflation and aggressive monetary
interest rates for longer, banking stability, trade wars high inflation and rising cost of borrowing due to tightening, the British economy is also facing the strikes by
and decoupling, as well as the debt ceiling aggressive monetary tightening several professional groups such as doctors and teachers

US’ Economic Growth (% yoy) Germany’s Economic Growth (% yoy) UK’s Economic Growth (% yoy)
15.0 15.0 30.0

10.0 10.0 20.0

2.2
5.0 1.1 (0.5)
10.0 1.9 0.2
5.0 1.6
0.0 0.0
0.0
(5.0) (10.0)
(5.0) (10.0) (20.0)

(10.0) (15.0) (30.0)

Despite the pick-up after the reopening, China's Vietnam's slowdown was affected by the declining India is a bright spot for the global economy, with growth
economy is still facing challenges from the property economic performance of major trading partners including that continues to expand driven by strong domestic and
sector crisis and geopolitical tensions China, the US and Europe export demand

China’s Economic Growth (% yoy) Vietnam’s Economic Growth (% yoy) India’s Economic Growth (% yoy)
20.0 15.0 25.0
20.0
15.0 10.0 6.8 15.0
5.7 6.1
10.0
10.0 6.3 3.3
4.5 5.0 5.0
0.0
5.0 (5.0)
0.0
0.0 (10.0)
(15.0)
(5.0) (20.0)
(5.0)
(25.0)
(10.0) (10.0) (30.0)

Source: Bloomberg, processed 10

 2024 GROWTH OUTLOOK OF INDONESIA'S MAIN TRADING PARTNERS TENDS TO
POSE DOWNSIDE RISK
GDP GROWTH OUTLOOK (% YoY)
US Europe Japan China
10.0 10.0 10.0 10.0 8.5
8.0 5.9 8.0
5.4 8.0 8.0 6.0 5.2
6.0 6.0 6.0 4.5
3.5 6.0
3.0
4.0 2.3 2.1 1.6 4.0
1.6 1.4
4.0 2.2
1.1 0.8 4.0 2.1 1.3
2.0 2.0
2.0 1.1 1.0 2.0
0.0 0.0 0.0
0.0
-2.0 -2.0 -2.0
-4.0 -4.0 -2.0 -0.4 -4.0
-2.8 -4.0
-6.0 -6.0 -6.0
-8.0 -8.0 -6.1 -6.0 -4.3 -8.0
-8.0
2019 2020 2021 2022 2023F 2024F 2019 2020 2021 2022 2023F 2024F 2019 2020 2021 2022 2023F 2024F 2019 2020 2021 2022 2023F 2024F

• Developed countries' economic growth

India ASEAN-5 Indonesia was restrained by aggressive monetary

5.3 – 5.7
9.1

5.0 – 5.3
10.0
6.8
10.0 10.0 tightening and structural issues such as
8.0 5.9 6.3 8.0 8.0
an aging population.
5.5 5.0 5.3
6.0 3.9 6.0 4.3 4.0 4.5 4.6 6.0
3.7
4.0 4.0
2.0
4.0
2.0
• China is faced with geopolitical
0.0
2.0
0.0 challenges, pressure from the property
-2.0 0.0
-2.0 sector, and an aging population.
-2.0
-4.0 -4.0 -2.1
-6.0 -4.0 -6.0 • Nonetheless, ASEAN and India have the
-8.0 -5.8 -4.4
-6.0 -8.0 potential to accelerate growth supported
-8.0
2019 2020 2021 2022 2023F 2024F 2019 2020 2021 2022 2023F 2024F 2019 2020 2021 2022 2023F 2024F by strong domestic consumption and
structural reforms.

Source: IMF and Ministry of Finance 11

MINISTRY OF FINANCE
REPUBLIC OF INDONESIA

02 DOMESTIC UPDATES
 INDONESIA'S ECONOMIC RECOVERY CONTINUES TO STRENGTHEN

Growth in Expenditure Components(%) Growth in Production Components (%)

Economic Growth (%,yoy)
7.1 (2.6) -2.9
2.0
5.7 Household Manufacture 3.4
5.4 5.03 Consumption
4.9 (Share Q1-23: 52.9% GDP) 4.9
4.4
(Share Q1-23: 52.9% GDP) 4.5
5.0 5.0 5.3
-3.8
5.0 Trade 4.6
3.0 2.1 (13.0%) 5.5
4.9
3.7 3.5 Government
(4.5)
4.2
Consumption
-2.0
(5.3%) 4.0 Mining (11.8%) 4.0
4.4
4.9
-0.7 (5.0)
3.8 Agriculture 1.8
Investment 1.9
3.9 (11.8%) 2.3
(29.1%)
-2.2 2.1 0.3
Construction -3.3
-2.1 (8.4) (9.9%) 2.8
2.0
18.0 0.3
Export
-3.5 (22.7%)
16.3
11.7 Transportation
(5.6%)
-15.1
3.2
19.9
15.9
-5.3 (17.6)
24.9 -10.3
Import Hotel & Restaurant
14.7 3.9
(19.6%)
2.8 (2.5%) 12.0
11.6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2020 2021
2020 2021 2022 2023 2022 Q1-23
2020 2021 2022 Q1-23
Sources: Statistics Indonesia 13
 STRONG ECONOMIC RECOVERY HAS REDUCED UNEMPLOYMENT AND POVERTY RATES

Unemployment Rate Poverty Rate

 Various Social
12.0 Unemployment (Mn People)
Unemployment Rate (rhs,%) Poor People (Million) Poverty Rate (rhs,%) Assistances Programs
7 29 12 have reduced
10.0 unemployment and
6.3
28 11 poverty rate.
6
8.0 5.5
27 11
10.2
4.9 5  The poverty rate returned
6.0 26 10
9.6 to single digit in 2021.
4 25 10
4.0

24 9.2 9  Robust economic

3 recovery has created
2.0
23 9 more jobs an in turn
reduced unemployment
0.0 2 22 8 and poverty rate.
2018
2015

2016

2017

2019

2020

2021

2022

2023

2022
2015

2016

2017

2018

2019

2020

2021
• Accelerating economic growth will create • The ongoing Social Registry Program will improve targeting.
more jobs, hence unemployment rate Integration and harmonization of the poverty alleviation
program will boost effectiveness of the programs

Sources: Statistics Indonesia 14

 INDONESIA HAS SUCCESSFULLY ACHIEVED LOWER INFLATION QUICKLY
Mainly by successfully decrease food inflation during the Holiday season

INDONESIA’S INFLATIONARY RATE (%, YOY) COUNTRIES’ INFLATION (%, YOY)

CHN 0.1
14.0 RUS
13.3 2.3
VNM** 2.4 Argentina: 108.8%
12.0
SAU 2.7 Turkey*: 43.7%
THA 2.7
MAL 3.3
10.0 9.5 KOR** 3.3
JPN 3.5
IDN** 4.0
8.0 7.6
BRA 4.2
CAN 4.4
IND 4.7
6.0
5.0 USA 4.9
4.3 FRA** 5.1
4.0
4.0 SGP 5.7
3.3 EUR** 6.1
DEU** 6.1
2.8 2.7
2.0 MEX 6.3
PHL 6.6
ZAF 6.8
0.0
AUS* 7.0
Jan
Feb

Jun
Jul

Jan
Feb

Jun
Jul

Jan
Feb
Apr

Aug
Sep

Dec

Apr

Aug
Sep

Dec

Apr
Nov

Nov
Oct

Oct
Mar

May

Mar

May

Mar

May
ITA** 7.6
2021 2022 2023 GBR 8.7
CPI Administered Price Core Volatile Food * Mar 2023
** May 2023

Source : Statistics Indonesia, Bloomberg, & CEIC (processed) 15

 EXTERNAL POSITION CONTINUED TO STRENGTHEN, BOOSTED BY DOWNSTREAMING
PRODUCTS
Strong export performance and commitment to down-streaming policy

Current Account Balance Fiscal Intervention

(% of GDP) Comparison of 2014 and 2022 Exports (US$ bn)
Sufficient Raw Materials & Equipment
1.50 (duty-free, raw materials & machinery import, 0%
0.90 value-added tax on goods, ban on raw material
1.00
exports)
0.50 85.6
0.29
0.00
Infrastructure
-0.50 (special economic zones, public-private partnership, 27.8
viability gap funding, project development fund, 56.2
-1.00
connectivity)
-1.50 1.1
178.5 Manufacture
-2.00 Investment & Market Access 118.6
-2.50 (tax holiday, tax allowance, Indonesia Eximbank, free
trade agreements)
-3.00
-3.50 2014 2022
Skilled Human Resources
Q1-20223
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

(super deduction of income tax for research and Manufacture* Iron and Steel Primary Sector**
development and vocational training, research *) Excluding Iron and Steel
endowment fund) **) Oil and Gas, Agriculture, and Mining

• Indonesia's current account balance strengthens, exiting the "fragile five" group.
• Value-added mineral exports (iron and steel) and the primary sector contribute to improved export performance.
• Dealogic ranks Indonesia as the fourth-largest market for new listed companies, driven by the promising
prospects of the EV battery industry.

Source: Statistics Indonesia , Bank Indonesia

16
 NEAR TERM ECONOMIC OUTLOOK REMAINS STRONG, BUT GLOBAL
SLOWDOWN RISKS NEED TO BE MONITORED

Consumer Confidence Index Mandiri Spending Index

The Consumer Confidence Index remains in the optimistic zone Mandiri Spending Index increases during the Ramadan and Eid period

163.5
126.1

Optimistic Threshold

Jan

Jan

Jan

Jan
Jul

Jul

Jul
Sep
Nov

Sep

Sep
Nov

Nov
May

May

May
Mar

Mar

Mar

Mar
Apr-21

Oct-21

Apr-22

Oct-22

Apr-23
Jan-21

Jun-21

Jan-22

Jun-22

Jan-23
Mar-21

Mar-22

Mar-23
Feb-21

Feb-22

Feb-23
Aug-21
Sep-21

Nov-21
Dec-21

Aug-22
Sep-22

Nov-22
Dec-22
May-21

May-22
Jul-21

Jul-22
2020 2021 2022 2023

Manufacturing Purchasing Manager Index Foreign Direct Investment

Indonesia's PMI remains expansive, but relatively slowing Foreign Direct Investment grows quite strongly in Q1-23

50.3 20.2

107.9

104.9

105.0

105.3

106.1

111.1

111.7

116.8

103.2

122.2

147.2

163.2

168.9

175.2

177.0
98.0

97.6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Jan

Jan

Jan

Jan
Jul

Jul

Jul
Sep

Sep

Sep
Nov

Nov

Nov

Apr
May

May

May

May
Mar

Mar

Mar

Mar

2019 2020 2021 2022 2023

2020 2021 2022 2023 FDI, IDR
PMA, Rp T(rhs)
T (rhs) % YoY
Source: Bank Indonesia, Bank Mandiri, Ministry of Investment, HIS Markit
17
 GROWTH IS EXPECTED TO REMAIN ROBUST IN 2023
Global uncertainties and their impacts to the domestic economy need to be mitigated

Annual Economic Growth Outlook (%, yoy) Indonesia’s Economic Growth Outlook (%, yoy)
Sources: Statistics Indonesia, forecast

(in %) 2023 2024

5.7
5.3 IMF (WEO Apr) 5.0* 5.1
5.0 5.0 5.1 5.2 5.0 5.3
4.9
5.3 World Bank (GEP June) 4.9 4.9
5.0
3.7
Bloomberg Consensus (May) 4.9 5.0
OECD (Mar) 4.7 5.1
Upside risks:
• The overall global economic prospects slightly improve.
• The implementation of the 2024 Elections positively impacts consumer spending.

• The acceleration of economic transformation continues (diversification, digitalization).

(2.1)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: IMF WEO April 2023; World Bank Global Economic Prospects June 2023; OECD Economic Forecast
Summary Mar 2022; ADB Asian Development Outlook April 2023;Bloomberg, and Ministry of Finance
Downside risks:
• The economic growth of trading partner countries, particularly China, remains moderate.
The US and Europe still face pressure.
• Exports of consumer products continue to experience correction.
• Businesses adopt a "wait and see" approach, leading to constrained investments.
18
MINISTRY OF FINANCE
REPUBLIC OF INDONESIA

03 FISCAL PERFOMANCE
 BUDGET OUTTURN UP TO APRIL 2023 SHOWED POSITIVE SIGN
Economic Activities and the implementation of the HPP Law drive revenue despite commodity price normalization

2022 2023 Positive Growth in Main Sector Tax Revenue (YoY)

Account % to Real. Jan-Apr 2023 Jan-Apr 2022
Real. % to Growth
(IDRtn) Revised Budget as of Share
as of Growth (%) Budget (%)
30 April Budget 30 April 9.5%
Manufacturing
27.4% 51.0%
A. Revenue 853.2 37.6 45.9 2,463.0 1,000.5 40.6 17.3
I. Tax Revenue Trade 5.8%
675.7 37.9 49.0 2,021.2 782.7 38.7 15.6 19.8% 62.5%
(DG Tax & Custom-Excise)

1. Tax 567.3 38.2 51.4 1,718.0 688.1 40.1 21.3 63.8%

Mining
14.8% 258.8%
2. Custom & Excise 108.4 36.2 37.7 303.2 94.5 31.2 (12.8)
II. Non-Tax Revenue 177.3 36.8 35.0 414.4 217.8 49.3 22.8 28.2%
Financial Services
12.9% 24.4%
B. Expenditure 750.5 24.2 3.8 3,061.2 765.8 25.0 2.0
I. Central Government 508.0 22.1 3.7 2,246.5 522.7 23.3 2.9 11.3%
Construction & Real Estate
4.2% 13.3%
1. Line Ministries
253.6 26.8 (9.0) 1,000.8 257.7 25.7 1.6
Spending 46.6%
3.1% Transportation 13.7%
2. Non-Line Ministries 254.4 18.8 20.4 1,245.6 265.0 21.3 4.1
II. Regional Transfer & 38.0%
242.4 30.1 4.0 814.7 243.1 29.8 0.3 Busines Services
Village Funds 2.5% 19.1%
C. Primary Balance 220.5 (50.8) (704.3) (156.8) 374.3 (238.8) 69.7
Information & 15.6%
D. Surplus (Deficit) 102.7 (12.2) (174.3) (598.2) 234.7 (39.2) 128.5 2.1% Communication 36.7%
% to GDP 0.52 (2.84) 1.12
E. Financing 143.2 17.0 (63.9) 598.2 223.9 37.4 56.3
Source: Ministry of Finance
20
 REALIZATION OF CUSTOMS AND EXCISE REVENUES SLOWS DOWN
Due to a decline in customs duties and excise revenues, but import duty revenues still show positive performance

Excise Revenue Import Duty Revenue Export Duty Revenue

668.89%

26.05% 34.42% 30.98% 83.32%

-5.16% 33.20%
-12.64% 0.13%
76.29
72.35
15.31 15.82
58.25 102.05%

-34.97%
11.48 11.49 14.51 -71.69%
43.33

7.18

4.11

0.95

Jan - Mar 2020 Jan - Mar 2021 Jan - Mar 2022 Jan - Mar 2023 Jan - Mar 2020 Jan - Mar 2021 Jan - Mar 2022 Jan - Mar 2023 Jan - Mar 2020 Jan - Mar 2021 Jan - Mar 2022 Jan - Mar 2023

Excise (IDR Trillion) Growth Import Duty (IDR Trillion) Growth Export Duty (IDR Trillion) Growth

Tax revenue from tobacco excise has declined due to a Driven by the increase in the USD exchange rate Affected by the moderated decline in CPO prices
decrease in the production of tobacco products, especially and vehicle excise tax and the decrease in mineral commodity export
in the first category, and the high revenue base in April volume
2022 due to early settlements.

Source: Ministry of Finance

* As of April 2023

21
 UNTIL APRIL 30, 2023, NON TAX REVENUE REALIZATION CONTINUES
TO GROW WELL, BUT LOWER THAN THE PREVIOUS MONTH
129.4
-3.8 -35.7 49.4 -17.3
Non-Tax Revenue 33.5
40.9
21.5
Oil & Gas
Revenue
2020 2021 2022 2023
35.0%
Oil & Gas (IDR trillion) Growth (%)
21.5% 22.8%
14.9% 109.3 130.7
37.2
-20.2
217.8
Non-Oil & Gas 57.6
25.0
Revenue 8.7 11.9
177.3 2020 2021 2022 2023
Non Oil & Gas Growth (%)
798923.2
-41.0 77.3 62.7
131.3
114.3 SOE’s 24 14.2 25.1 40.8
Revenue 2020 2021 2022 2023
SOE's Revenue (IDR T) Growth (%)
68.3
10.9 -1.2
-12.5

Other Non-Tax 30.8 51.9 57.6 56.9

Revenues 2020 2021 2022 2023

Other Non-Tax Revenues (IDR T) Growth (%)

Jan - Apr 2020 Jan - Apr 2021 Jan - Apr 2022 Jan - Apr 2023 84.2
Public Services 31.6
-36.4 6.4
Non Tax Revenue (IDR Trillion) Growth Agency (BLU) 17.3 31.8 20.2 21.5

Revenue 2020 2021 2022 2023

Source: Ministry of Finance
* As of April 2023 Public Service Agency (IDR T) Growth (%)
22
 GOVERNMENT MAINTAINS FOCUS ON PRIORITY SPENDING
Enhanced central government spending for direct community benefits

Health Spending Food Security Spending Social Protection Spending

IDR Trillion IDR Trillion IDR Trillion
27.3 43.9 27.2
17.6 13.1 29.2 7.4 6.7 4.0
-1.3 16.3
-5.1
-16.3 6.3
-12.9

91.4 97.5 124.1 129.0 122.4

35.6 35.1 44.7 37.4 42.3 9.5 10.1 8.8 11.4 13.2
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Realization Growth (%) Realization Growth (%) Realization Growth (%)

Education Spending Infrastructure Spending Subsidy Spending

IDR Trillion IDR Trillion IDR Trillion

37.2 60.7 24.1 39.0

12.8 17.6 9.6
-6.9 -13.5
-12.6 -6.0 -1.4
-23.5 -24.0
-36.0

37.9 32.8 40.7 56.6 62.0

122.2 106.9 146.7 137.8 162.1 77.7 49.7 79.9 61.1 59.7
2019 2020 2021 2022 2023
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Subsidy Growth (%)
Realization Growth (%) Realization Growth (%)

Source: Ministry of Finance

* As of April 2023

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 INCREASED TRANSFER TO REGIONS WITH IMPROVED GOVERNANCE

Transfer to Region Fund

(January – April)
The distribution of transfers to regions until April
2023 IDR 243.1T 2023 reached Rp243.1 trillion (29.8%), marking a
(29.8% from budget) 0.3% increase compared to the realized amount in
the 2022 fiscal year of Rp242.4 trillion (30.1%).
IDR242.4T
2022
(30.1% from
budget)
Revenue Sharing (DBH) General Allocation (DAU)
Physical Special Allocation (DAK Fisik) Non- Phyisical Special Allocation (DAK Non Fisik)
Grant Special Autonomy & Privilege Allocation for Yogyakarta
Village Fund Incentive Fiscal

Local Government Performance

48.19
44.96
REVENUE 16.93 12.02 SPENDING 12.34
3.4 10.77
7.19 2.19 In April 2023, regional budget
The performance of local taxes 1.99 59.31 54.90
has shown a 9.6% increase expenditure experienced a -
63.62 69.76 5.56% (YoY) slowdown. This was
(year-on-year), primarily due to
the growth in the realization of primarily caused by reduced 112.52 108.82
consumptive taxes, which absorption in Personnel, Goods
Jan - Apr 2022 Jan - Apr 2023
indicates improving economic and Services, and Other
Local Tax Retribution Expenditures due to national Jan - Apr 2022 Jan - Apr 2023
activities within the local
regions. Return of Local Gov't Other Revenue holidays Personnel Spending Material Spending
Capital Spending Other Spendings
Source: Ministry of Finance
* As of April 2023
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 PRUDENT AND ACCOUNTABLE FINANCING MANAGEMENT FOR BUDGET
PERFORMANCE SUPPORT

Financing Realization Up To 30 April Domestic Loan (Net) Foreign Loan (Net)

IDR 0.78T IDR 3.08 T
243.9
156.4
• Domestic Loan Withdrawal • Foreign Loan Withdrawal
240 (Gross) IDR 1.28T (Gross) IDR 30.17T
142.2 • Domestic loan principal • Foreign loan principal
14.8 installment financing installment financing
3.9 IDR (0.50T) IDR (27.09T)

2022 2023
Loan (nett) Securities (nett)

• As of April 28, 2023, a total

of 63,097 FLPP (Housing
Financing Liquidity Facility)
PLAN & REALIZATION Housing homes have been Education Fund • Total International • Financing
Financing Management Endowment Development LDKPI
OF INVESTMENT Liquidity
disbursed to low-income
Agency (LPDP) Find as of April Cooperation by IDR 2T
communities across 378
FINANCING Facility cities/regencies, with a IDR 8T 2023 Fund (LDKPI)
IDR 85.78T* (Funding Target) IDR 134.11T IDR 8T*
total value of Rp7.05
trillion.

Source: Ministry of Finance

* As of April 2023

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MINISTRY OF FINANCE
REPUBLIC OF INDONESIA

THANK YOU
FISCAL POLICY AGENCY,MINISTRY OF FINANCE ,
REPUBLIC OF INDONESIA

Gd. Notohamiprodjo
Dr Wahidin no 1, Jakarta Pusat 10710
email: iru@kemenkeu.go.id

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