Amid the situation of global economic issues that hit every country that felt the impact of the strengthening of the US dollar, it seems that Indonesia is one country that has an effective policy so that the strengthening of the dollar does not have a significant impact on the Indonesian economy. This is inseparable from the important role of one of President Jokowi’s ministers, Sri Mulyani Indrawati, who was named the best Minister of Finance in 2018 in the version of Global Markets magazine. This ‘Finance Minister of the Year, East Asia Pacific’ award was given for its work in maintaining Indonesia’s financial reputation amid more challenging conditions when it returned to serving the Minister of Finance for the second time.
Minister of Finance Sri Mulyani’s policy is also considered credible and effective. This award is given in the middle of the IMF – World Bank Annual Meeting in Bali. Global Markets is a leading news magazine in the field of international economic markets whose past 30 years have become a reference for actors and institutions in the international economic and financial sector.
As written by Global Markets, Sri Mulyani got the biggest challenge when she came back. The Indonesian economy offers great potential but provides a serious problem for the Ministry of Finance. Tax collection has long been a problem in this country, but the government is also struggling to spend its money.
As data released by Global Markets, Sri Mulyani has overcome two problems, namely tax collection, and absorption of the government budget. Tax collection in 2017 reached 91 percent of the target, a big jump, from the achievement of 83 percent in the previous two years.
This was helped by the tax amnesty policy which helped bring Indonesia’s wealth abroad back to the homeland. While government spending grew very rapidly in the three years since 2017, it reached 21.1 percent of GDP. While the APBN uptake increased from 73 percent in 2016 to 97 percent in 2017, the highest level in six years.
She also plays a role in reducing poverty, an issue of great concern. The poverty rate fell 0.6 percent between September 2016 and September 2017, the biggest decline in five years.
Finance Minister Sri Mulyani, according to Global Markets, is currently facing a difficult period, how to encourage infrastructure investment, while maintaining state finances remain stable. Because the need for infrastructure investment means a shrinking fiscal deficit, something that most finance ministers actually see as a stain on government finances.
On that occasion, the Minister of Finance also stressed that the challenges in the next year will be more severe such as the exchange rate, the pressure of the trade war and so on. Indonesia will show an accountable, credible and sustainable budget. Indonesia will realize by improving the quality of sustainable human resources.
As Global Markets wrote, when Moody upgraded Indonesia to Baa2 in April, it was in consideration of an ‘increasingly credible and effective policy framework.’ According to Global Markets, describing Sri Mulyani’s ‘credible’ and ‘effective’ strengths were words that describe it perfectly.
Sri Mulyani had previously also received several awards such as the 2006 Asia Best Finance Minister by the Emerging Markets Forum at the World Bank and IMF Annual Session, Singapore 2006; The best Finance Minister of 2006 by Euromoney magazine; the 23rd most influential woman in the world by Forbes 2008 magazine, and finally she was named the world’s best minister at the World Government Summit in Dubai, February 2018.