The Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that currently the world is facing The Perfect Storm and a multidimensional crisis that occurs at the same time, with high complexity.
This was conveyed by Airlangga in the Budget Work Meeting which discussed the Indicative Ceiling of the Coordinating Ministry at the Budget Agency of the Indonesian House of Representatives, Monday (6 June 2022).
He said, the world is currently faced with 5C challenges and crises, namely, Covid-19, namely the crisis due to the Covid-19 pandemic which is expected to end soon so that it can become a tailwind that is able to encourage global economic recovery.
Conflict, namely the crisis due to the Russia-Ukraine conflict which resulted in the disruption of the world supply chain (supply chain disruption), especially food and energy, thereby increasing world commodity prices.
Climate Change, namely a crisis due to climate change that results in an increase in global temperature and has an impact on environmental degradation, natural disasters, extreme weather, food and water insecurity, and global economic disruption.
Commodity Prices, namely a crisis due to rising commodity prices and then pushing up global inflation. And the Cost of Living, namely a crisis due to the high cost of living which will also continue to push up global inflation.
Meanwhile, the issue of productivity and mitigation of the scarring effect due to the Covid-19 pandemic is still a challenge for Indonesia’s economic recovery efforts in 2023 to come. In this regard, the Government Work Plan (RKP) in 2023 carries the theme “Increasing Productivity for Inclusive and Sustainable Economic Transformation”.
To support the implementation of this theme, the Coordinating Ministry for Economic Affairs has proposed 61 Work Programs (priority and regular) with the possibility of adding, merging and developing programs in line with the dynamics of their implementation.
“The Coordinating Ministry for the Economy will directly support several National Priorities including National Priority-1 or PN-1, namely strengthening economic resilience for quality and equitable growth, PN-3 increasing quality and competitive human resources, PN-5 strengthening infrastructure to support economic development and service delivery. basic principles, and PN-6, namely building the environment, increasing disaster resilience, and climate change,” said Airlangga.
In the 2022 Fiscal Year, the Coordinating Ministry for the Economy has carried out Automatic Adjustments or a budget reserve of Rp. 35.2 billion in order to anticipate global economic uncertainty. As of June 5, 2022, the absorption of the 2022 budget has reached Rp157 billion (35.3% of the total ceiling) or 38.3% of the total ceiling after deducting Automatic Adjustments.