2017 Indicative Ceiling Must be ‘Realistic and not Too Ambitious’, President Jokowi Says

President Jokowi leads a limited cabinet meeting on the 2017 budget year indicative ceiling at the Presidential Office, Jakarta, on Thursday (28/4)

President Joko ‘Jokowi’ Widodo has called on his ministers to formulate ‘realistic and not too optimistic’ indicative ceiling for the 2017 budget year.

“(Formulating the ceiling must be based on) economic calculation that is really real and well-calculated,”  President Jokowi said in his introductory remarks before a limited cabinet meeting on the 2017 budget year indicative ceiling  at the Presidential Office, Jakarta, on Thursday (28/4).

The President also underlined that the formulation of the 2017 indicative ceiling must be really consistent with the ‘money-follow-program’ approach.

The consequence, the President added, budget allocation to ministries and institutions, must focus on priority programs and the budget cannot be equally allocated.

President Jokowi told the ministers to continue development in the infrastructure, education and health sectors, especially in the regions, in outermost areas, in border areas, and in villages, as well as development that can provide more job opportunities to reduce poverty level and narrow gaps between regions.

In the meantime, related to the operational spending and non-infrastructure capital spending in every ministry and institution, President Jokowi reminded the need for budget efficiency.

As for fiscal decentralization through regional transfer and village funds, President Jokowi said that the increase for them would be bigger than the increase of spending of ministries and institutions.

“Regarding the allocation of subsidies, we must really pay attention to it so that it will be really well targetted. Also, the Special Allocation Funds (DAK) to boost economic growth of economy in the regions is very important,” the President said, adding that the increase of the allocation of Village Funds reaches 10 percent, apart from the regional transfer.

In the meantime, regarding state revenues, President Jokowi noted that one of the biggest state revenues is from taxes. Therefore, he added, tax ratio must be really optimal and tax base must also be widened.

In addition, the President said, law enforcement to increase obedience of tax payers must be done as well.

President Jokowi hopes that the people would really get and feel the benefits of the funds allocated in the State Budget.

The limited cabinet meeting was also attended by Coordinating Minister for Political, Legal, and Security Affairs Luhut B. Pandjaitan, Coordinating Minister for the Economy Darmin Nasution, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Presidential Chief of Staff Teten Masduki, Minister of State-owned Enterprises Rini Soemarno, Minister of Law and Human Rights Yasonna Laoly, Minister of Communication and Informatics Rudiantara, Minister of Maritime Affairs and Fisheries Susi Pudjiastuti, as well as Minister of Manpower Hanif Dakhiri. (DID/DND/DNS) (Naster/YM/EP)