70 Years of FEB UI Anniversary, Public Lecture with the Minister of Finance: Financial Policy and Its Supervision in Overcoming the Covid-19 Pandemic
Nino Eka Putra ~ PR of FEB UI
DEPOK – (18/11/2020)
The Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, Ph.D., was a guest speaker in the Public Lecture, with the topic “Financial Policy and Its Supervision in Overcoming the Covid-19 Pandemic” moderated by Vid Adrison, Ph.D ., Chair of the Department of Economics, FEB UI, organized by the Faculty of Economics and Business, Universitas Indonesia (FEB UI), Wednesday (11/18/2020). This online activity is part of a series of commemoration of the 70th FEB UI Anniversary which carries the big theme of Together, Innovate, Benefit.
Acting Dean of FEB UI, Dr. Beta Yulianita Gitaharie in her speech said that today’s public lecture, which presented the Indonesian Minister of Finance, Sri Mulyani, is aimed to provide insight into state financial policies during the Covid-19 pandemic. “This is part of our efforts to continuously learn from graduates who are outside the campus, to provide views and even lecture in class, or work opportunities, to achieve improvement for improvement. We express our gratitude to the Minister of Finance of the Republic of Indonesia who has graciously accepted to be a resource person and also thanks to the head of Universitas Indonesia who have supported the 70th Anniversary of FEB UI,” said Beta.
The Rector of Universitas Indonesia, Professor Ari Kuncoro, opened the event by saying, “This pandemic has a multidimensional impact, because it covers the demand side, supply and public expectations. Meanwhile, the number of the middle class in Indonesia is quite large and is also affected by health issues, thus pressing the consumption side. Right now, most likely the worst is over. It appears that several indicators are getting better, although not yet fully recovered. It is hoped that the presence of the Minister of Finance of the Republic of Indonesia, Sri Mulyani, can provide comprehensive understanding for students, so that they are able to see problems from a broad perspective.”
In her presentation, Sri Mulyani Indrawati, said that Covid-19 created global investor anxiety. Indonesia as a developing country has recorded capital outflows due to the negative sentiment of the pandemic. However, these pressures are now starting to be overcome with the support of policies for handling the pandemic and adding economic stimuli. In terms of the economy and the number of victims, the impact of the pandemic on Indonesia is in the low category compared to other countries. The majority of countries intervened using their State Budget (APBN) and fiscal policies to deal with the impact of the pandemic.
The APBN is an instrument of stabilization, distribution and allocation. In addition, the APBN is the main instrument for immediately responding to the impact of the pandemic, supporting recovery, and safeguarding future reforms. In tackling the pandemic, the 2020 State Budget fluctuated dynamically, of course the government and the DPR are coordinating with each other.
“The Ministry of Finance (Kemenkeu) focused on working harder, so that the APBN is maintained in order to avoid a critical APBN. In terms of monitoring the implementation of the economic recovery program, the Ministry of Finance implements good governance by upholding accountability and maintaining the speed of implementation. It is evident that economic growth in the third quarter of 2020 shows a turning point towards a strong economic recovery. This is reflected in economic growth on the production side, increasing domestic demand, significant growth in investment, and improving export performance. Of course with the hope that the recovery trend will continue until 2021,” Sri Mulyani said.
The posture of the 2021 State Budget, continued Sri Mulyani, will later be expansionary and consolidative in order to accelerate economic recovery and strengthen economic reform. We will keep our policies on a strategic nature. We need to continue to focus on fundamentals related to human capital, health, education, community skills, and increase innovation and productivity. This pandemic can be used as a momentum to become an accelerator of reform and the glue of mutual cooperation.
“I see the crisis caused by the pandemic as an opportunity to transform through reform. For that, I invite all parties to work together, help each other in facing the pandemic. I am sure that Indonesia will be able to come out of this crisis as a winner, so that we remain optimistic in achieving Indonesia’s dream of becoming a developed country in 2045,” Sri Mulyani said in closing her presentation session.
This Public Lecture sponsored by PT Bank Negara Indonesia (Persero) was closed by Dr. Beta Yulianita Gitaharie, Acting Dean of FEB UI. (hjtp)
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