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'Human capital' keyword for 2020 state budget

Jakarta Post - August 16, 2019

Rachmadea Aisyah, Jakarta – President Joko "Jokowi" Widodo will continue with his human capital development focus in the first year of his second term as his administration has designed the proposed 2020 state budget to support this agenda.

In his annual state address and financial note speech at the House of Representatives on Friday, Jokowi said the government had laid out five areas of focus that could propel Indonesia's economy against the backdrop of sluggish global economic growth and unfavorable external factors.

The five main aspects are human resources development, infrastructure acceleration, reinforcement of social protection programs, regional autonomy and anticipation of global uncertainties, the President said.

"With a focus on those five aspects, and keeping in mind expansive yet directed and measured fiscal policies, [the state revenue target] has thus been set at Rp 2.22 quadrillion [US$156 billion]," Jokowi said, adding that strengthening innovation and improving Indonesia's human capital would be crucial to supporting domestic growth.

The figure is an increase of 2.6 percent from this year's target of Rp 2.17 quadrillion. This year, the Finance Ministry said it had collected Rp 603.34 trillion in taxes in the first half, or 38.25 percent of the state budget target and a year-on-year(yoy) increase of 3.37 percent in tax revenue.

Added with non-tax revenues, the state revenue reached Rp 898.8 trillion, 41.5 percent of the state budget target.

Meanwhile, state expenditure forecast for 2020 has been set at Rp 2.53 quadrillion, approximately 14.5 percent of GDP, up only 1.5 percent from Rp 2.46 quadrillion in the 2019 state budget.

As of the first half of 2019, state expenditure realization was recorded at Rp 1.03 quadrillion, 42 percent of the total allocation.

Source: https://www.thejakartapost.com/news/2019/08/16/human-capital-keyword-for-2020-state-budget.html