Jakarta, IO – Finance Minister Suahasil Nazara highlighted collaboration between the state budget (APBN) and Danantara in supporting Indonesia’s development vision. He made the remarks at the Danantara Technology Innovation and Investment Forum on Monday, October 26.
Suahasil explained that the APBN and Danantara serve to advance the country’s national development agenda.
“When we have big ideas and a grand vision for Indonesia, there are two hands at work: APBN and Danantara. We must work very closely together,” he said.
The minister noted that the APBN accounts for around 14% to 15% of Indonesia’s gross domestic product (GDP), which stands at approximately Rp25,000 trillion. Most of the country’s economic activity is generated by households and businesses through consumption, investment, and trade.
The government needs to coordinate these various economic forces to ensure participants’ contribution for growth and greater prosperity.
“Economic activity is driven by society as a whole: households that consume, companies that invest, and exporters that sell their goods abroad,” he added.
Suahasil further emphasized that government spending should be directed toward beneficial sectors and programs. Fiscal policy must stimulate economic activity while maximizing the benefits from available resources.
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He also outlined three main objectives of the APBN: promoting economic growth, maintaining stability, and preserving fiscal credibility.
The budget’s stabilization function is essential to keeping economic activity on track, while fiscal credibility depends on maintaining a manageable budget deficit. “The APBN must be able to drive economic activity. Second, it must maintain stability. Third, it must remain credible and fiscally sound,” the minister stressed.
Through closer collaboration between the APBN and Danantara, the government seeks to maximize Indonesia’s economic potential and advance its development vision while maintaining fiscal soundness and credibility. (eka)
