Holiday Ayo - Minister of Finance Sri Mulyani said that there were too many regulations in Indonesia, hampering domestic economic growth and burdening society.

According to him, these overlapping regulations are one of the reasons why Indonesia is still trapped in the middle income trap.

"The middle income trap usually appears in the form of regulations and policies that complicate an economy and place an increasing burden on society," he said as quoted by cnnindonesia.com, Monday (23/9).

Therefore, the government is trying to standardize regulations by enacting Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).

"Because to be able to achieve a high income country, Indonesia must be able to avoid the middle income trap," he said.

Sri Mulyani also appreciated the increasingly massive digitalization steps of regional governments.

Because, this will make supervision of transfers to regions from the center better.

"We also need to ensure that state financial management is also efficient and able to continue to create improvements in social and economic welfare in the regions. Therefore, in the APBN, we continue to allocate development of digital infrastructure and improvement of the quality of human resources," he concluded.