The House of Representatives’ budget committee revealed on Tuesday the results of its deliberation with the government on the draft state budget for 2018.
The committee’s chairman, Azis Syamsuddin, delivered the government’s working program priorities and general direction of next year’s fiscal policy in the meeting attended by Finance Minister Sri Mulyani Indrawati and the ministry’s high ranking officials.
They agreed on macroeconomic assumptions that include an economic growth target of between 5.2 percent and 5.6 percent, an inflation rate of 2.5 percent to 4.5 percent and a rupiah exchange rate of between Rp 13,300 and Rp 13,500 per United States dollar.
Indonesian crude price (ICP) is targeted at US$45 to $55 per barrel, while oil and gas liftings are set at between 771,000 barrels of oil per day (bopd) and 815,000 bopd, and from 1.194 million barrels of oil equivalent per day (boepd) to 1.235 million boepd, respectively.
“The government has set a focused and measured expansive [fiscal] policy in 2018, with the state budget deficit set at between 1.9 percent and 2.3 percent of GDP [gross domestic product],” Azis said. “The policy [aims] to push for a sustainable and fair economic growth, and to support productive activities to increase [the country’s] production capacity and competitiveness.”
A more detailed draft budget will be presented by President Joko “Jokowi” Widodo to the People’s Consultative Assembly (MPR) in an annual meeting in August.