Indonesia set deficit 1.9% t0 2.5% for 2017

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JAKARTA (TheInsiderStories) – Indonesia government set deficit for State Budget of 2017 in the range 1.9 – 2.5 percent, said finance minister. The projected 2017 deficit assumes a weaker exchange rate for the rupiah and a stronger economic growth rate.

Finance Minister Bambang Brodjonegoro said at the Budget Committee of House of Representative, Indonesia’s economic growth is predicted to reach around 5.5 to 5.9 percent in 2017 boost by public spending at the range 5.1 – 5.2 percent, government spending 6.2 to 6.5 percent and investment around 6.4 to 6.7 percent.

While Governor of Bank Indonesia (BI) Agus Martowardojo sees the Indonesian economic growth lower than the government expectation in the range 5.2 to 5.6 percent based on the improving of the domestic economy in this year through a policy reform both on fiscal and monetary side.

For the inflation rate government and BI has a similar assumption at the level 3 to 5 percent, while for the rupiah government set in the range Rp13,650-13,900 per US dollar on average while BI set the Rupiah level around Rp13,600 to Rp 13,900/US$.

Agus explained, until June 3, the average rate of Rupiah at the Rp 13,592 or appreciated 1.42 percent since January (ytd). In the future, He added, the Rupiah movement still get impact from the Federal Reserves policy and China’s economic situation.

Bambang also sees the other risks the government needs to take notice is the slowdown of Chinese economy, low commodity prices and changing of the Fed rates, which is expected to be raised in June this year.

In domestic front, there are positive signs, including speed up of government expenditures and infrastructure development programs. The fundamental of Indonesia’s economy is relatively strong as seen by controlled inflation.

The government is currently drafting the 2017 State Budget submitted to the People’s Representative Council (DPR), commonly in August for approval.

Following is the highlights of the 2017 State Budget:

  • Fiscal Deficit 1.9 – 2.5%
  • GDP: 5.5 – 5.9%
  • Inflation: 4.0 plus minus 1%
  • Exchange Rate: Rp 13,650 – 13,900
  • Interest Rate of SPN 1 month: 5.0 – 6.0%
  • Oil Price:  $35-45 a barrel
  • Oil Lifting:   740 – 750 MBOPD
  • Gas Lifting:  1,050 – 1,150 MMBTU
  • Ratio hutang 26-27% dari GDP

The post Indonesia set deficit 1.9% t0 2.5% for 2017 appeared first on The Insider Stories.

Source: The Insiderstories
Indonesia set deficit 1.9% t0 2.5% for 2017

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